Thank you so much for replying.
That explanation was very thorough so I appreciate the time you took to type all of that up.
Are you mostly trading supply and demand levels? And if so, are you waiting for price action or just setting limit orders? Also, have you done any sort of backtest to give you confidence in order to get through the drawdowns?
I’ve realized I’m not a good trader when I let emotions get in the way, like most. I think it would be different if I had a backtested strategy where I had confidence in getting through a string of losses, drawdowns, etc.
Thank you,
My Response:
Okay, let’s get real about my trading style:
Supply and demand zones are my bread and butter. They’re the foundation of my trades and how I see the market in the long run. Sure, I also check for deep pullbacks, stop runs, breakout zones, and institutional reversal pin bars, but these setups don’t exactly grow on trees.
For most of my supply or demand zone trades, I use price action (Engulfing Patterns/Pin Bars) as my entry signal.
But, if I’m really feeling a zone, I might use a pending order just to be sure I don’t miss out.
About backtesting…
It can be a helpful tool, especially for smoothing out drawdown periods. However, it’s not always a perfect fit for supply and demand trading. The whole process of drawing and evaluating zones is a bit subjective, which makes backtesting Tricky.
I’ve been brainstorming some ideas, though, like backtesting zones that form at major swing highs and lows. I haven’t had a chance to really dig into that yet, but I’m excited to see what I can discover.
In the meantime, I’d recommend holding off on any major changes to your strategy until you’ve had a chance to read some of my upcoming articles.
Hang tight and keep an eye out for those new articles.
I’m confident they’ll give you a serious edge in the market.
Enjoy the rest of your weekend!
PAN