winks weekend waffle 250109, page-36

I forgot the word "commenced" at a critical point.

Wink,
Great post as usual. Like you I trade a lot off the extremes of indicators using MACD, Stochastics and RSI combined. I mainly use the 5 minute chart with final checks of the 1 and 3 minute prior to taking a position.

FWIW here is my take on Stop Losses. When all three indicators are at extreme levels and a sharp turn has just commenced I set a stop at the most recent high or low plus or minus one pip plus or minus the margin your service providor has on that contract(estimated on some contracts and fixed on others). I am finding that when the indicators move sharply off extreme overbought or oversold levels then if you are correct in your judgement that a change in trend has begun, the price rarely goes back above the most recent high or below the most recent low in the near term. I also have a strategy of closing half the position when all indicators begin to turn against the trade and leave the other half open with the houses money at a break even or traling stop and watch things unfold.

As an example I shorted oil on Friday night on the 23:45/ 23:50 bars (Melbourne time) using this method and set the stop at the most recent high of 43.56 + 0.01 + 0.15 (conservative max margin estimate at this time of night). Anyway I got 30 pips on the first half of the position and 110 pips profit on the second half.

I believe this game is 90% about discipline once you have a good feel for the market but you need to apply that discipline to every trade, every day. I am slowly improving in this area but still have to improve before I can truly call myself a fully disciplined trader. Setting stops is one critical point and very important in ensuring that your biggest loss does not outway your biggest profit of the day.

Anyway check this method out. It seems to work quite often for me.

Regards
Aksier