<img src="https://www.aussiestockforums.com/forums/attachment.php?attachmentid=53421"/>
I think you will find you have a very low win rate buying breaks and moving the stop to BE on the first move up. Futs just don't move like that. It would be 1 in 20 breaks that jump and keep on going. Then due to their mean revision bias you are also going to get very poor R:R.
This break trade how many previous times can you see it in the chart?
Have definitely found moving stop to B/E will just get one stopped out on every trade unless you have the absolute best entry possible! *See above attachment for a prime example from what TH posted in the HSI K200 thread. Over a 40 tick range of entries possible all would've been stopped out had the stop been moved to break even on the first push.
Also, for what it's worth given my noob status, I've been toying with if A then B type scenarios just to give me something basic to work with regarding the stop, so if the trade has gone my way change stop to b/e after X time (15 mins on HSI) as it will generally have made a new short term high/low after that time so much slimmer chance of needless stop out.
So you'd have been stopped for no loss twice and had a great winning trade on the third attempt.
The problem is?
Its not about being right it's about being profitable.----
Thats example is not what I was talking about. I was saying that breakouts done by entering on the first ticks to new highs then moving to BE at the end of your entry bar is an utter crap way to trade a breakout. My bet is you will be stopped out of a reasonable trade (only reasonable cuz I don't think thats the way to go anyway) just about every time because they mostly roll back a bit then go again. Your move to BE takes you out of the trade just as its about to move back in your favour.
Then what?
EDIT:
Here is the perfect example playing out now a a FTSE run 50 points higher. Great up move. Set a buy order a few ticks above last high. Then move your stop to BE once it moves your way. Every trade taken out on the next few bars!
View attachment 53422
The trade above HSI is not a good trade.
The testin of the high coupled with volume indications
And range and close of bars shows that a long trade
Just isn't the right trade.
I thought he was talking about a short trade----
He's just on the wrong side of the trade.
Poor analysis.
Thats example is not what I was talking about. I was saying that breakouts done by entering on the first ticks to new highs then moving to BE at the end of your entry bar is an utter crap way to trade a breakout. My bet is you will be stopped out of a reasonable trade (only reasonable cuz I don't think thats the way to go anyway) just about every time because they mostly roll back a bit then go again. Your move to BE takes you out of the trade just as its about to move back in your favour.
Then what?
I'm only really concentrating on the last 4 bars (as marked),
WHY? You are in the middle of a congestion zone.
Actually scratch that last comment. I don't know what I'm talking about.......
Going gung ho off the first 3 min chart off the day might be a little aggressive.
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