Hi Tom, thank you for the insight.
May I know why you don't have any pending order at D? as the set up still valid after all.
Is it because the price in unable to reach D for quite sometimes already?
and e.g. the longer it takes to reach D the less accurate the set up will be?
UnknownUnicorn180388
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@pisonc, For me personally i have a strict entry criteria not only a D leg completion this gives me a higher strike rate and removes a lot of subjectivity that can come when a D leg completes.
pisonc
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@tomhall, Understood Tom.
So you are saying that the price need to respect D first, as in a good indication to have resistance level at D, and only then we will short.
I guess patience is a virtue right Tom =)
I have a question and hope that you can shed some light. Say for example the price has gone beyond D but still within X (means the set up still valid).
Will you put your pending order then?
Secondly, what if the price nicely tested D level as resistance, but we missed the trade and it went to hit TP1 (going to TP2).
Should we put a pending order by hoping the price will retrace back to D before going south toward our TP1 & TP2?
UnknownUnicorn180388
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@pisonc, 100% sometimes you have to sit on your hands and await the opportunity.
If it met my entry rules then yes i would still set a pending order, as soon as it exceeds X then for me it would be invalid.
Once a trade is missed i wouldn't advise looking for the same again, ( does lightning strike twice? )
I never personally miss a trade as 1, i set pending order so if im asleep we have orders in place 2, i have alerts set at certain levels to notify me of this. 3, If you are 1 step behind the market then the probability of long term success is slim, you should always have ideas ahead of schedule.
This "entry rule" that you mentioned, does it depends on other indicators? or fundamental e.g. ccy strength? or both? If I may ask.
I agree that once a trade is missed, we better move to the next ccy pair. (love the lightning illustration =) )
Am I right to state that "Missed" is defined as it has reached TP1? meaning if the price still hover around area of D - TP1, we should still able to pend the order (provided it meet our "entry rule") ?
UnknownUnicorn180388
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@pisonc, That's correct, you should have an entry strategy so that once all of your indicators are in place, you take a position having more than 50-50% chance of winning based on your backtesting data.
By missed i mean, a position wasn't executed before price moved towards target.
If a position didn't meet the rules then there was nothing missed.
pisonc
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@tomhall, Crystal clear Tom.
Thank you for the insight! Have a great weekend =)
May I know why you don't have any pending order at D? as the set up still valid after all.
Is it because the price in unable to reach D for quite sometimes already?
and e.g. the longer it takes to reach D the less accurate the set up will be?