Had a +1R fairly uneventful day today. Didn't stay in MSFT trade that would have been rather rewarding if I just kept the SL where it was originally placed.
My kid needed feeding in the morning, and I put the stop into lossless position and went to feed him. Next time I should just keep the stop where it was (behind the tail).
This got me thinking of this weeks whipsaw setups on the 1m chart.
Thoughts
I think I've been trading FB wrong this whole time. Not entirely wrong, just wrong in the small details of entry. And in this game - details is almost everything when it comes to technical execution.
Basically, I need to switch entering on 5m chart only as base. From here we can branch out into more situation specific setups. But, base default of this setup is executed on 5m chart, not on 1m. 1m is just for seeing action at higher res.
A FB formation can be seen earlier on 1m than on 5m. But its premature to assume that 1m candles can be reliable markers. Some strategies can be developed from here to enter trades earlier, but these will be exceptions to the default 5m method.
Default Method
Enter only on closure of candle 2 of the Yin/Yang candle formation.
This will reduce profits due to increased stop size, but it should pay back in consistency.
All normal rules for FB stay the same.
Exceptions worth considering
I am dealing specifically with a whipsaw method whales use to shake out small fish like me, and at first I thought it was unique to NVDA (see here), its not, its happening on a lot of instruments.
Perhaps that whipsaw IS THE REAL FB.
So I am adding it to my algo now, with addition to 5m entry rule, to allow myself to enter BEFORE second 5m candle closes when I see such a secondary whipsaw formation.
Exit Early
Another new rule, due to observation of the common reason for stop loss triggers.
If it looks like it might be entering see-saw, exit early, with smaller loss. Don't wait for stop.
Will update system page later.