- Put in a rule to move stop to breakeven
- Lower your targets
- Take partial profits earlier on
- Use a trailing stop
Assume you have a reversal trading strategy based on support/resistance levels. With Pheemu, you recognize that you have a lot of losing trades. Right when you get in, price just keeps going and you are never in the green. This is most likely happening because of your entries.
1. Be patient with your entry
Instead of buying right as price hits support, wait to see how price reacts. What is the volume doing? How are the candlesticks being formed? You can add more criteria to your entry saying there must be a bullish candlestick formation before entering. You could add another criteria that makes you wait to enter a position until price crosses above a specific moving average or other element.
2. Use a wider stop
If you’re getting stopped out a lot, you may be using too tight of a stop. In this scenario, try using different criteria for your stop. You could either move it lower or wait for a candle closing below a level to be stopped out less.