Hi Trae
I have tried your stop hedge approach. I found exactly the gotcha problem you highlighted at the end of your post starting this thread. Once you have a hedge position you then still have to make the decision about when the market will turn which is no easier than when entering the initial trade that went the wrong way. I got it wrong a few times and paid the price, not only higher losses but it was doing my head trying to figure out the net effect of all positions.
Much simpler just trading the original trading plan with a stoploss imo - KISS as they say. The trading plan should stand on its own 2 feet, so to speak, and in any case, I have taught myself that the result of any one single trade is not that important, what's important is the long run statistics and net effect of all the trades entered according to the trading plan. I find that way mentally much easier to deal with, but that's just me.
Cheers, Sharks.
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Hi Trae I have tried your stop hedge approach. I found exactly...
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