Today the picture was obviously bullish from the ON range and prices holding above the previous swing high. The TL break works at the futures open . Once the cash market opens and retests the previous swing and gets bought off there – indicating that it’s a good idea to take the break – I need to take four breaks before i get the big winner.
- This means have to risk 4R and using the standard TP strategy (25% and 1:1, 25% & STE at 2:1 and 50% at 5:1) I make 2.5R.
- But, if I take the TL break but use a SL below the day’s low and the previous swing high i.e. 25-30 pts I only need one trade and that trade see +100 pts
Much better to use PA stop and take profit instead of making multiple attempts at a TL as this gets quite soul destroying. Plus there’s a big risk of slippage and bigger risk of losing hope and missing the cracker.