I will explain the strategy that is beginning to give me consistency in trading after almost 2 years between simulator and real. Basically it is a well-known strategy and well explained by Andrew in his book, I sometimes mix it with other strategies for entry and exit. According to the data that the daily trades throw me, the concepts written here could change.
This topic is created with the purpose that we interact and learn from each other. I am open to any type of comments, whether or not they are in accordance with the concepts issued here.
Other topics to be taken into account to day trading consistently:
1- Choose stock in play (earnings are the best gaping 2% or more)
2. Wait at least 7 min to determine the correct setup.
3. Keep your losers smaller than your winners.
4. Watch for 2: 1 ratio.
5. Define your daily goal (1-2% of your equity), maximum loss per trade, maximum loss for the day (if you have 3 erroneous trades in a row take a break).
6. It is good to watch at the price action. With time you get to realize how the price should behave in the setup. This is important to get out with the least possible loss. As Andrew always says "Commissions are cheap, you can always exit a trade and enter again if the setup continues".
I will put several examples of the setups and I will classify the best ones, the regular ones and not so good ones. These setups start in March 2019 (below you can see the date), they have marked trades but they will not be taken into account for the explanation.