Iconoclast1978
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Hello all.
Here I have a trade example of the type I like to play on occasion. The trade back tested as a winner. We are trending bullish on the 15 min above the 200, 50 and 21 MA's. The trade is against the trend which is not my usual choice. I usually trade off of engulfing candles, with the trend, ideally with some divergence in favour and a bounce off a moving average.
Confluencing factors making me choose this trade, whilst against the trend were...
- Near heavy resistance (yellow line)
- Regular bearish divergence presented (white line on the chart and stochastic below)
- I would be able to set an order at or just above the resistance line with a small amount of stop loss covering spread and a bit more in the region of 1.25% on the trade
- 21 day MA offered me a good TP position to exit from
As you can see this trade would have won and won at approx 3.5% factoring in spread costs. In my opinion this is a good trade with low risk to reward in the range of approx. 3:1
Do you think this is a good trade or bad trade (independent of backtest outcome) and why.
Thanks
Here I have a trade example of the type I like to play on occasion. The trade back tested as a winner. We are trending bullish on the 15 min above the 200, 50 and 21 MA's. The trade is against the trend which is not my usual choice. I usually trade off of engulfing candles, with the trend, ideally with some divergence in favour and a bounce off a moving average.
Confluencing factors making me choose this trade, whilst against the trend were...
- Near heavy resistance (yellow line)
- Regular bearish divergence presented (white line on the chart and stochastic below)
- I would be able to set an order at or just above the resistance line with a small amount of stop loss covering spread and a bit more in the region of 1.25% on the trade
- 21 day MA offered me a good TP position to exit from
As you can see this trade would have won and won at approx 3.5% factoring in spread costs. In my opinion this is a good trade with low risk to reward in the range of approx. 3:1
Do you think this is a good trade or bad trade (independent of backtest outcome) and why.
Thanks
