DISCLAIMER: AMATEUR INVESTOR. FOLLOW THIS ADVICE AT YOUR OWN RISK. NOT GUARANTEED TO WORK OR DELIVER A RETURN.
15-minute TA for short-term traders. Right now I am building a reusable strategy based on Fib Retracement, Fib Projection, and 50/100 day MA's.
Entered at 1243 (0.618 level). Based on the fib projection, the current uptrend will end at around 1340.
The 1.5R, 1R and -1R are decision points based on risk units. Basically, whatever capital you invest in a trade, take between 1%-5% of that (based on your risk appetite). That's your R ("risk unit"). Then, set your stop loss such that you won't lose more than 1R (that's the -1R level) if the trade goes sour and defies your fib prediction.
StopLossPrice = (EnteredCapital - R) / TotalStockBought.
Use the same formula to calculate your 1R and 1.5R price levels -- at 1R level and above, your trade is significantly profitable. At this level you can start considering a trailing stop to lock in profit.
1RPrice = (EnteredCapital + R) / TotalStockBought.
The levels shown on this idea are specific to my trade. Do the calculations for your trade.
15-minute TA for short-term traders. Right now I am building a reusable strategy based on Fib Retracement, Fib Projection, and 50/100 day MA's.
Entered at 1243 (0.618 level). Based on the fib projection, the current uptrend will end at around 1340.
The 1.5R, 1R and -1R are decision points based on risk units. Basically, whatever capital you invest in a trade, take between 1%-5% of that (based on your risk appetite). That's your R ("risk unit"). Then, set your stop loss such that you won't lose more than 1R (that's the -1R level) if the trade goes sour and defies your fib prediction.
StopLossPrice = (EnteredCapital - R) / TotalStockBought.
Use the same formula to calculate your 1R and 1.5R price levels -- at 1R level and above, your trade is significantly profitable. At this level you can start considering a trailing stop to lock in profit.
1RPrice = (EnteredCapital + R) / TotalStockBought.
The levels shown on this idea are specific to my trade. Do the calculations for your trade.