The key to making STE at 1:1 work for me is precise entries
2 min read
I like to use STE at 1:1 (usually +10pts) as it frees up my mind to look for new trades and according to my stats, it improves my profitability.
But there is one really obvious problem: I am trading levels so my entry is usually just above or below it and if the market makes a 10pt reaction, then retests before making the move, I will get stopped out and then the trdae will take off. This often leads me into some crappy trades – it did so toady (12th Feb).
To minimise the impact and likelyhood of these kind of stop hits, I need to be very precise and antipatory with my entries – to get in before the crowd.
Here I wanted to take a break of the TL but it was so fast that my entry was 4pts above where I wanted it to be – and this meant I got stopped when it retraced to the fib. The idea entry in this case would be to use the HL forming at the purple – by making the assumption that the buy off 11123 followed by support at the purple fib would be enough to assume a next leg up was higb enough probability to trade.This is the same PA and the yellow line shows where the stop needs to be on the long when it’s opened – and then after +10 and STE it will still be below KLs. It’s still only a +20 but today’s entire range was 50pts.This was a tricky trade as the lines are not clear. In this case, using STE at 1:1 saves me a loss if my entry is good. This is a broken triangle reversal pattern and if I had traded it using that pattern, I would have seen 1:1 and BE instead of -1R (even better is to trade the upper triangle TL as a retest rather than a straight break). My entry was reactive as that bar would have looked like a big green bar at the time I opened the trade.
