Core Month 02 05 How To Mitigate Losing Trades Effectively - newsqlguru/ict-index GitHub Wiki
ICT Mentorship Core Content - Month 02 - How To Mitigate Losing Trades Effectively
Key Terms
Content
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Market setup & Frame R:R Multiples
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Using the same trade setup as last two videos.
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Let say we were stopped out.
- Took a full stop of 2%.
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Take another look at same trade.
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Has trade unraveled?
- If no, using secondary OB, look for PA to trade into it again.
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When we see PA with the same OB direction trade into the secondary OB we can use this third OB as our trade entry.
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Entry of limit order on third OB.
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Stop loss, high/low of secondary OB.
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The trade idea is supported by PA of 3 orderblocks at this point.
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We will use 1/2 of the risk of the first trade or 1%.
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Summary, we allow more movement with a larger stop loss and reduced risk.
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2r We can consider taking off the trade at TP2 or 2% and has mitigated our initial loss.
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3r we move our stops up to 2r.
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We should take all profits at 3r rather than try to shoot for the moon.
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At r3 we've recovered our loss and made 1%.
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Reducing risk allows us to continue a trade idea that we had entered too early and taken a full loss.
- We keep cutting risk by .5 on each loss.
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Reduced drawdown is the key to long term profitability.
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Need patience, reduce risk to prevent fear based trading
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Avoid the Fear Based Decision Making mindset.
Notes
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Find 10 occurrences in past price action and log them in your trade journal.
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Extra credit if found on multiple time frames.