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Dear all,
In trading range, I got a double bottom and buy 1 point higher than the H2 signal bar. The target reward can be
- Initial risk x 1 times or more.
- Actual risk x 1 times or more.
- 1 point below L1 signal bar.
- 1 point below L2 signal bar.
When trading in trading range, the profit always cannot be maximum when using 1 time x initial risk. It is not easy to estimate how many times of initial risk will be the best option. Currently, I prefer take profit at 1 point below L1 signal bar.
However, when trading in bear trend, it seems that take profit by 1 time x initial risk is safe.
Any comment?
Regards,
Ma Hei Chun
Hi Ma Hei Chun,
Trading Range is Limit Order Market or LOM. It's for trading against the trend and it is for some experienced traders which he/she already is consistently profitable with his/her stop order.
Obviously, you're trying to apply a swing trade profit target in a limit order market which is a much different story. For a swing trade, I trade the trend, not limit order market. That's why I get my 2x or more of my initial risk.
Simply, I choose to swing trade with stop order with at least 2 times of my initial risk as my profit target. I choose to trust and follow Al's advice. It took years until I understand many things. The result is my consistently profitable account. Nothing more, nothing less.
Hope it helps,
Wei
