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

  • 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.

Notes

  • Find 10 occurrences in past price action and log them in your trade journal.

  • Extra credit if found on multiple time frames.