📌HOW DO WE GET INTO POSITIONS AFTER STOPLOSS? #useful
The accuracy of our trading ideas ranges from 85 to 97%. The lion's share of our transactions are closed with a good profit. But this also means that in the remaining 5-15% of cases the coin goes in the wrong direction and you have to record losses using a stop loss. There is no need to be afraid of stop losses - they are created to help the trader reduce losses. What to do in such situations? In such situations, we often publish a message “re-login is relevant.” This means that you can open a position on the same coin again, but under new, special conditions.
RE-ENTRY ALGORITHM AFTER STOP LOSS:
1. Relevant only if it says that “restart is relevant” for this coin!
2. If you did not enter the first position and did not receive a stop loss, there is no need to enter a re-entry!
Example. Let's look at the example of a random signal#XXXSHORT. Let's say the entry signal was $3.998, the stop was $4.3. If you were too lazy to place a grid of orders, then your average entry will be 3.998. And then the coin went in the wrong direction and the stop loss was triggered. Stop loss brought a cross x20 with leverage, taking into account the use of 5% of the deposit, a net loss of -7.02% of the deposit. If we start at 100%, then now we have 92.97% of the initial deposit. It seems like we should be upset, but we know that stop loss was created to help the trader. Then a message was published: “re-entry is current, new entry point 4.149, new first target 4.1.”
First reboot, how to do it? We make a re-entry only if, after the message about the re-entry, the coin has consolidated on the 1-hour chart above the initial entry level of 3.998 (if long is below the entry, if short is above the entry). The principle is this: when we re-enter after a stop loss, we can increase the position size compared to the first entry. To re-enter, we will need 36% of the new deposit with x20 leverage. We place the first order for 18% of the deposit with cross x20 leverage at a price of 4.149 (re-entry point. If the first order for re-entry is triggered, we place the second order for another 18% of the deposit with x20 cross leverage at the midpoint between the new entry and stop (4.149 + 4.3) / 2 = $4.224. Both orders worked, our average entry into the position became 4.1865. Then we reached the first goal of $4.1. This goal brought us a profit of +42.2% with cross leverage x20, taking into account the use of 36%, this net profit +15.19% to the deposit Total, if we take the start at 100%, then now we have 107.1% of the initial deposit.
Restarting the second level. Very rarely, but it happens. Let's say we did everything according to the instructions, made a re-entry, but the position went into stop loss again (it turns out there are already two stops). The coin was stubborn! Entry was 4.224, stop loss was 4.3. This brought a loss of -52.79% with cross leverage x20, taking into account the use of 36%, this is a net loss of -19.02% on the deposit. Remember: to recoup 2 unprofitable entries, you simply need 2 successful entries with an increased position size. But we are not giving up and a message was published: “a new re-entry is relevant, a new entry point of 4.098, a new first target of 4.055.” We make a re-entry only if, after the message about the re-entry, the coin has consolidated on the 1-hour chart above the initial entry level of 3.998 (if long is below the entry, if short is above the entry). To re-enter, we will need 54% of the new deposit with cross x20 leverage. We place the first order at 27% of the deposit with a cross x20 leverage at a price of 4.098 (reset point). If the first re-entry order is triggered, place a second order for another 27% of the deposit with a cross x20 leverage at the midpoint between the new entry and the stop (4.098 + 4.3) / 2 = $4.199. Both orders worked, our average entry into a position became 4.1485. Then we reached the first goal of $4,055. This goal brought us a cross x20 leverage, taking into account the use of 54%, a net profit of +24.9% to the deposit. In total, we have paid for the first re-entry and have -5.9% of the deposit instead of the -25% that we just had. A few signals and this loss will also easily be replaced by profit!
Results. There is no need to be afraid of stop losses, you just need to know how to work with them!
Successful transactions ❤️