It's been a while since I've posted anything here. I mostly don't hang out on tradingview anymore, but still check in every now and again.
Anyway, if you're reading this, you're probably familiar with my old limit order breakout-retest strategy, where you're pricing the market on breakouts and collecting profits on retests. I've updated this for reliability, but it is more difficult to execute now so you'll have to pay attention and spend a good amount of time testing this for yourself on a demo account.
The method is simple (to me at least):
1) With limit orders, you're attempting to go with the direction of the trend. This means that in an uptrend, you're going to find the breakout point of the current move and the swing low from the previous move.
2) From the breakout point to the latest high, you're going to either eyeball a 50% retracement level, or draw a chart for it (will show this below), and then you're going to be placing tiny limit orders going all the way from that 50% retracement down to the swing low of the previous move. You're going to price the market in a wide area this way. You will likely require a script or a bot to do this, as it's slow with inconsistent spacing if you do it by hand.
3) You're going to have a hedge stop instead of a stop loss, at the swing low of the previous move. This is where it gets dangerous and will require practice.
The hedge stop will be a stop order with a position size equal to all of your limits combined.
I said kind of a lot in all those pics, but I hope I got the message across. :D
Make sure you get yourself a script or bot of some sort to deploy those limit orders. If you do it by hand, you'll likely have less of them (which is fine), but always understand your risk before the play is made. On metatrader, I use a "Lines profit loss" indicator to show me the accumulated total of all of my trades. I can drag the line along the screen to see what my P&L will be if price reaches x point. You should get something like this too, or commission it if your platform doesn't have it. Understanding risk numbers is very important for this strategy.
Anyway. I hope this helps someone!
Anyway, if you're reading this, you're probably familiar with my old limit order breakout-retest strategy, where you're pricing the market on breakouts and collecting profits on retests. I've updated this for reliability, but it is more difficult to execute now so you'll have to pay attention and spend a good amount of time testing this for yourself on a demo account.
The method is simple (to me at least):
1) With limit orders, you're attempting to go with the direction of the trend. This means that in an uptrend, you're going to find the breakout point of the current move and the swing low from the previous move.
2) From the breakout point to the latest high, you're going to either eyeball a 50% retracement level, or draw a chart for it (will show this below), and then you're going to be placing tiny limit orders going all the way from that 50% retracement down to the swing low of the previous move. You're going to price the market in a wide area this way. You will likely require a script or a bot to do this, as it's slow with inconsistent spacing if you do it by hand.
3) You're going to have a hedge stop instead of a stop loss, at the swing low of the previous move. This is where it gets dangerous and will require practice.
The hedge stop will be a stop order with a position size equal to all of your limits combined.
I said kind of a lot in all those pics, but I hope I got the message across. :D
Make sure you get yourself a script or bot of some sort to deploy those limit orders. If you do it by hand, you'll likely have less of them (which is fine), but always understand your risk before the play is made. On metatrader, I use a "Lines profit loss" indicator to show me the accumulated total of all of my trades. I can drag the line along the screen to see what my P&L will be if price reaches x point. You should get something like this too, or commission it if your platform doesn't have it. Understanding risk numbers is very important for this strategy.
Anyway. I hope this helps someone!
Comment:
For hand-placed limit orders, turn the fib retracement chart into a grid like this: