spyderman replies to: J1mm’s Intraday Trend follow Strategy

How I handle my trades…

The initial StopLoss

Initial Stoploss should be “Dynamic” and based on Half Trend, we need to define initial Stoploss at Half Trend + X for me and I trust a lot Half Trend and the way it reflects short term resistances, I like to put my SL at Half trend + 5 pips

BUUUUUUUT!!! There is always a but…

I don’t place my SL physically, I know that I will close the trade if a candle CLOSES on my SL, not if the price touches it, this way I increase the risk of course, but also LOTS of situations whe price is just comming to retest the zone and get rejected to continue…

Look here how the price is rejected at half trend zone and continues the movement… You get the point?

Attached Image

The initial StopLoss at half trend + X pips is really important, and also this StopLoss should ONLY be activated after candle close, as I said Price very often touches the level just to be rejected back again, Trade should be exited only if Price is closing IN or pass our Imaginary SL.

What you could have is a hard SL, just to make sure you don’t get burned on a heavy news event and unexpected big move.

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