ever played around with doubling up a stop?
In other words you put in a stop order double the original order. When you get stopped out you are in a play the other way. Of course you could get whipsawed to death, but in most cases the areas that I find are either significant reversal areas and they play out the way I expect them or significant break-out areas where I get stopped out and it breaks out strongly in the direction of the stop out. Of course there are the cases where you get stopped out a couple of times before it does what was originally thought and that's the danger of this concept.
TO
TonyC
Rep: 99
Posts: 471
M,
the Stop-and-Reverse concept is nice but where would your new stop be on the new reversed position then? the SAR tactic sounds good but not really practical to use if u want to control your initial risk with a technically placed stop IMO.
In the case of stop-out with PTA failure,U could look for lower time frame setups with defined stops to get u on board in the direction of the area's failure instead of just reversing position at the last stop out level.That way u know where your stop is given the setup u are playing.
Just my friendly suggestion to you.Of course u may have different experience and results with the SAR technique in your trading.But from MY trading experience with it I had poor results.Maybe i was missing something but I like it better when i can get things done without complicating things and btw SAR that can lead to overtrading, wich can negatively impact ur bottom line.
Regards,
T
the Stop-and-Reverse concept is nice but where would your new stop be on the new reversed position then? the SAR tactic sounds good but not really practical to use if u want to control your initial risk with a technically placed stop IMO.
In the case of stop-out with PTA failure,U could look for lower time frame setups with defined stops to get u on board in the direction of the area's failure instead of just reversing position at the last stop out level.That way u know where your stop is given the setup u are playing.
Just my friendly suggestion to you.Of course u may have different experience and results with the SAR technique in your trading.But from MY trading experience with it I had poor results.Maybe i was missing something but I like it better when i can get things done without complicating things and btw SAR that can lead to overtrading, wich can negatively impact ur bottom line.
Regards,
T