Hello,
Good day mentor, i just bought your 3 books to read on.
The two books on how banks and institutes trade and zero sum fun enhanced my view to charts on what has been happening. For pin bars book, it shown me the proper trading method.
Some questions which is hindering my trading progress…i am using demo now.
U mentioned the trade placing swings are still valid if they are not more than 50 pips apart.
For example, If i identified a supply or demand zone which is about 20 pips, stop wriggle of another 30 pips, and entry wriggle 50 pips, my total risk area is 100 pips.
If my risk:reward is 1:1,only some of the time i am able to get it and let the other half position running for profit. Even if i got it, my reward will be diminished or breakeven due to my another half position being stopped out. Is a risk area of more than 100 pips too wide?
The instructors from ota had been teaching us to look for minimum 1:3 risk:reward will u agree this is the fact in the market?
Another issue i had is looking for evidence of banks’ actions.
Sometimes i have a zone, the price swing and shown me that is a trade placing area but it never came back anymore. This way of analysing is correct but also reducing alot of my opportunities.
Is it because i had been too immersed with supply/demand stradegy, using wrong timefrane or i’ve been analysing charts wrongly?
Thanks in advance. I am desperate for success because i need cash.
My Response:
If you come across a zone about 20 pips wide, there’s no hard rule you need a 30-pip wiggle room for your stop, or a 50-pip range for your entry.
For example, let’s say you’re trading a demand zone with a pending order.
Your strategy could look like this: set your entry on the zone’s edge, then place your stop around 10 pips below the other edge.
Note: This is considering we’re looking at a zone on the 1-hour chart.
From my perspective, there’s really no need for a 30-pip buffer…
As you trade the zones, my advice is to keep a close eye on the rally-base-drop and drop-base-rally zones for entries. While they may seem infrequent compared to the rally-base-rally and drop-base-drop zones, they have a higher success probability, irrespective of the timeframe they appear on.
Hope this clarifies your queries.
PAN.