Assuming you have prepared comprehensively, Trade Execution at C4 or C5 (5 PM or 7PM) should be relatively much simpler. There is great value in working to a plan in trading as then the subjective element can be eliminated. The more objective you become in trading, the closer you are to success!
Here is how it works as per our Trading System:
Trade Entry price - Trade entry should be the close price of the 2H candlestick that completes @5PM (C4) or @7PM (C5). Never jump the gun and trade before the 2H candlestick completes as it often leads to bad trades.
Type of Order - Place a limit order at the trade entry price (close of C4 or C5, as applicable). Cancel if the order does not get filled before the 2H candle completes (if the trade is entered @ 5PM, wait till 7 PM for it to be filled) or the trade runs away too far.
If the trade runs away without getting filled, do not get carried away by momentum to take the trade at an unfavourable entry price as that skews the risk reward adversely. Wait patiently for the price to retreat for your order to be filled. If it does not, there will be plenty of other trades so do not bother. This was not meant to be your trade.
Placing the order as above should happen within the first 5 minutes after 5PM or 7PM as the case may be. This is not difficult as you would have already tabulated the setup, and your decision to trade or not to trade BEFORE 5PM or 7PM. This should only be about execution, as the name suggests.
Note : An important consideration regarding trade entry on C4 @ 5PM is the change in US open by an hour (opens at 8PM IST instead of 7PM IST) due to DST that becomes applicable in the first week of November till the first week of March next year i.e. 4 months in an year. During these 4 months, postpone trade entry to 7PM as backtesting shows that 7PM is a better window to enter during these 4 months.
Please click on "Next Post" to move to Trade Management.
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