It’s hilarious to think, I don’t have a better term, so I just called it power position.
I can’t jot a complete breakdown as it involves a discretion part. Note that I can share my strategy, it ll not erode anything.
R-unit Vs SL
say, my R – unit is 5000.
and you can play around with qty’s according to SL. I calculated to throw in bigger qty’s without changing the risk amt. Some will call it a tight SL, suffocating the trade. I just call it my SL.
movement
As a daytrader, I look for movement and most trades are done by 945. After that I find things slowing down.
theme
i look for fades. what comes up goes down, what goes down comes up (even if momentarily). This is where discretion comes. The instinct this is it where it ll fade. Discretion because experience made recognition possible.
Systematic
there are some things where I obviously need a system/or a set of rules.
R -unit
RR ratio
if A happens do B set of list
filtering stocks
Risk management is straightforward :
take max 2 trades. if both fails, done for the day.
if can’t decide an entry pre 945, done for the day.
1:2 is a good. but 1:3 is better.
keep R constant for the month.
There will be human errors at times. 1:3 gives you a chance of absorbing those errors.
always journal. See if there is a deviation from what is planned and actual.
there is nothing as I have arrived. try to sit at live market even if you don’t have a trade.
I can’t breakdown much. Ah, and I have even learned for a novice trader of 8 months when I was in year 6. See, you need to be open in trading. There is nothing as I know everything.
Trading is about filling holes. We can pick lot from others on the way.
And always keep SL. There is nothing wrong about SL being hit. In fact, let it hit so often that you don’t seem to care.
BO is good quick entries. And espresso doesn’t break their BO into teeny orders, which is very good.