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jeremyjohnolson

Nesting Multiple Strategies in One Trade, Good Idea?

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jeremyjohnolson

I had a thought today, I think I want to try nesting various trading strategies into one trade.  For example, one trade strategy will be for a short little pop, the other for a longer term trend.  For example, a lot of times, seems like almost always in fact, when a stock breaks out of the 1, 5, or even 15 min opening range, there is almost always at least a small short little pop (if not a large pop).  Knowing this, I can buy a large amount of shares based on a tight stop loss, just below/above the top/bottom of the body of the opening range candle, and another chunk of shares I plan on holding longer for a trend to set in.  So this way, I will sell the large chunk quickly and take some quick profits on the little pop right at the start, then hold the lesser portion of the shares for the longer term trend with my stop all the way at VWAP, or some other level based on the 1, 5, or 15 min ORB strategy.  That way I am still never violating my risk management rules, but I am also giving myself the chance to make more significant money on the first short little pop since I am taking a much large share size (based on a tighter stop loss level).  So then, even if the longer term trend fails to set in, I can still make a significant amount on the initial relatively small pop.  Does this seem like a good idea, or not?

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Alastair

100% YES.   This is similar to what I have done.  I am a swing trader, but joined BBT to learn scalping in equities.  However I use top down analysis ..........from Monthly to 1 minute timeframes.  This allows me to see potential upcoming BIG swings but scalp into AND add on pull backs as the big swing plays out.

This process will also help with intra-day swings also and capture 25R to 30Rs per trade.  Tighter stops bigger profits once u find the right entry levels and add (scale in and scale out) as the price moves toward the big picture target.

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