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

Market setup & Frame R:R Multiples
Using the same trade setup as last two videos.
Let say we were stopped out.
- Took a full stop of 2%.
Take another look at same trade.
- Has trade unraveled?
  - If no, using secondary OB, look for PA to trade into it again.
- When we see PA with the same OB direction trade into the secondary OB we can use this third OB as our trade entry.
  - Entry of limit order on third OB.
  - Stop loss, high/low of secondary OB.
- The trade idea is supported by PA of 3 orderblocks at this point.
- We will use 1/2 of the risk of the first trade or 1%.
Summary, we allow more movement with a larger stop loss and reduced risk.
- 2r We can consider taking off the trade at TP2 or 2% and has mitigated our initial loss.
- 3r we move our stops up to 2r.
- We should take all profits at 3r rather than try to shoot for the moon.
- At r3 we've recovered our loss and made 1%.
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.
Reduced drawdown is the key to long term profitability.
Need patience, reduce risk to prevent fear based trading
Avoid the Fear Based Decision Making mindset.