Hello Traders,
I'm very sure many of you'll have experienced this situation where you get Stopped out of a trade and the trade eventually does go in your direction, just without you.
This does happen to me occasionally trading my strategy and I'm looking to implement a new rule into my trading strategy that will help me around this and wanted to get your opinions on this
I've narrowed down 2 rules, both of them involve manually stopping myself out (so I would never put in a stop loss order into my trading platform).
1-15m Candle Close - The first rule would be to wait for a 15m candle to form fully and close below my stop loss. Several times I've noticed the 15m candle usually stops me out with a full candle which eventually turns into a wick and usually never CLOSES below my stop. So I basically get stopped out by a wick and the trade then resumes to go in my direction.
2-Double test - The second rule is to wait for price to hit my stop loss 2 times. So I would never exit a trade the first time it hits my stop (assuming it hits my stop and retraces back into a wick) and I would wait for the price to hit my stop loss a second time, and this is when I would exit the trade.
These are just a few ideas that came to my mind, what do you'll think would be a better strategy to implement keeping risk management in mind, and if you'll had any other experiences using different strategies to get around this problem.
Thanks
I'm very sure many of you'll have experienced this situation where you get Stopped out of a trade and the trade eventually does go in your direction, just without you.
This does happen to me occasionally trading my strategy and I'm looking to implement a new rule into my trading strategy that will help me around this and wanted to get your opinions on this
I've narrowed down 2 rules, both of them involve manually stopping myself out (so I would never put in a stop loss order into my trading platform).
1-15m Candle Close - The first rule would be to wait for a 15m candle to form fully and close below my stop loss. Several times I've noticed the 15m candle usually stops me out with a full candle which eventually turns into a wick and usually never CLOSES below my stop. So I basically get stopped out by a wick and the trade then resumes to go in my direction.
2-Double test - The second rule is to wait for price to hit my stop loss 2 times. So I would never exit a trade the first time it hits my stop (assuming it hits my stop and retraces back into a wick) and I would wait for the price to hit my stop loss a second time, and this is when I would exit the trade.
These are just a few ideas that came to my mind, what do you'll think would be a better strategy to implement keeping risk management in mind, and if you'll had any other experiences using different strategies to get around this problem.
Thanks