The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
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I can understood Initial Risk, and Actual Risk is smaller than Initial Risk,and Actual Risk is usually at the bottom or top of Entry bar.
BUT, In general, Actual Risk Stop doesn't make any sense on Price Action, right? Just reduce Some risk.
Another words, If price hit the Actual Risk Stop something like bottom of entry bar, do i need to exit position?
I think one way to look at Actual Risk is looking at what the minimum stop should have been after the trade completed successfully - I think its also called Maximum Adverse Excursion (MAE). Usually you will find, if its a good entry, the actual risk is less than initial risk.(possibly below low of entry bar).
How do you determine the trade has completed successfully?
For example if bought at entry bar and has 2 bull bars, is this successful? Then do you exit at actual risk if the next bar pull back to or below entry bar?
think one way to look at Actual Risk is looking at what the minimum stop
If the “minimum stop ” has been hit,do i need to exit?
There isnt one correct answer - You will have to try the stop at the initial risk( below signal bar), and over time measure based on your trades, whether you can raise it to being below the entry bar after the trade has triggered. If you do want to raise it to below the entry bar, do so only after price has moved to at least a scalp (1 or 2 points) in your direction. IOW, you would do it mainly if you are swinging (4+ points) so don't move the stop too soon. Once you have moved the stop, yes, you exit if its hit. Don't have mental stops.
