20160516
Long 2 TF 1108.7, 1109.0, -1.5, -1.5
Short 3 TF 1109.7, 1109.7, 1109.9, +1.3, +1.3, +1.5
Long 1 TF 1108.2, -0.0
Long 1 TF 1108.4, +2.5
Short 2 TF 1113.5, 1113.5, +0.7, +1.4
Total TF +5.7
Overcoming losses is critical in trading, but it comes with a precise trade entry requirement. When stp'd out, you not only can re-enter the trade if the Trade Model is still intact, you MUST re-enter the trade. Since price is 1/3 of the critical elements required for a Trade Entry Model, it cannot be ignored, but there is a whole grid of price levels facing the trading range for the day, and the other critical elements, momentum and fractal structure, can force price to re-intersect as successive price levels, stopping you out of a position during volatile price spikes. If the model is still intact, it becomes even better at a greater price extreme than it was just earlier, thus re entering the trade with a greater number of contracts is not only valid, but required if you are to reposition for something greater than your stp-out losses. It comes as additional comfort to the contrary trader that this violates two otherwise widely accepted norms and rules forbidden to the greater pool of futures traders. Namely, first, never sell new highs or buy new lows, and secondly, never add to a losing position. As a whole, I thank the trading community at large for adhering strictly to these two rules, as it puts most of my trades among the the slimmest minority of fresh trader commitments, and thus increases the probabilities of their success. Think outside the box. Question everything you've been told about trading. Reverse engineer your methodology to the places where you've been repeatedly stp-d out in the past as the most desirable places to enter trades. ...and ask yourself, "What might be the criteria to have identified those places as Trade Entry Models in the first place?"
