The Sicilian Defense: Two Variations
Updated
Although this method of trading is commonly known yet its sophistication is being ignored by the rookies. Here I ll present two simple but powerful variations which may add further trading skills to many readers.
##Remember that trading skills/TA are just 20 percent part of trading, the rest is your mindset/psychology that play the most significant role in trading success. Learning a skill takes few minutes to few hours but developing a winners mindset takes much longer time##
The First Variation:
This variation is used when the first candle is so large that our risk-reward (RRR) is lopsided. In this case, we do not take the breakout entry. Rather we measure the length of the candle and place the order at the 50 percent retracement level with stop as prescribed before. By doing so we reduce the risk by half and hence increasing our reward, creating the required RRR balance.
The Second Variation:
This variation is used when our trade has failed, means we are stopped out. (Yes, that's true !! we have to accept the harsh truth of taking losses. Only our discipline and risk management makes us profitable in the long run). We reverse out trade as soon as we are stopped. We can set our target where we recover our loss (including brokerage) accepting that the trade didn't work this time.
Sometimes these reversals create very strong momentum, so trailing can be done as per personal preference.
Hope this strategy makes sense to all the readers.
Trade safe, stay healthy.
JJ
##Remember that trading skills/TA are just 20 percent part of trading, the rest is your mindset/psychology that play the most significant role in trading success. Learning a skill takes few minutes to few hours but developing a winners mindset takes much longer time##
The First Variation:
This variation is used when the first candle is so large that our risk-reward (RRR) is lopsided. In this case, we do not take the breakout entry. Rather we measure the length of the candle and place the order at the 50 percent retracement level with stop as prescribed before. By doing so we reduce the risk by half and hence increasing our reward, creating the required RRR balance.
The Second Variation:
This variation is used when our trade has failed, means we are stopped out. (Yes, that's true !! we have to accept the harsh truth of taking losses. Only our discipline and risk management makes us profitable in the long run). We reverse out trade as soon as we are stopped. We can set our target where we recover our loss (including brokerage) accepting that the trade didn't work this time.
Sometimes these reversals create very strong momentum, so trailing can be done as per personal preference.
Hope this strategy makes sense to all the readers.
Trade safe, stay healthy.
JJ
Note
I ll post some recent examplesNote
Note
Note
I have just randomly picked these examples. But some of them are actually traded by me.
Note
similar 50% setup on short side in the green rectangle.
Note
Unfortunately I could not find any failed trade. But surely there would be many. Its just that time is scarce. So all the best with this setup. Hope many of you would make money through this.
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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