Avoiding whipsaws

[kisruh]

There are days where I lost some small pips due to whipsaws which accumulates to quite significant total loss

So the alligator was sleeping, AO was low (orange), dot showed up and purple was correct. Perfect setup 1! So I put pending order (at M5 AIMS level if it was close), hit, but only to find out that the price retraced after some pips and hit my SL. Imagine this happens 3-4 times and the total accumulation of the lost small pips will be quite significant.

So what should I do to avoid these whipsaws? Should I strictly wait for M5 to open then retrace to green line?

Any other suggestions to avoid this nasty whipsaw?

Thanks!

[Den]

Hi Kisruh,

Im answering to tell you I had this problem and how I reduced it. I am not an expert and only really supporting you because I used to get frustrated and sulk and not go near the PC for weeks after a run of whipsaws. X(

I look for whole ( round) numbers the price hesitates around some of them.

I only trade high volatility timezones.

I look for areas of close support/ resistance and wait for breaks of them.

I try not to allow the market play with my head.

I listen to Immy, Grant, John and the gang and write everything down and go back in time and see where I went wrong

This is what I do and I know you will receive the best expert advice from the pro's and I will be watching this space closely,

As I said Im no expert just sharing what I did.

Thank you for your post keep your chin up

ps I have the whole number indy but it wont allow me to upload it happy to email it to you if you want it.

1000'spips2u :-bd

[immy]

There are days where I lost some small pips due to whipsaws which accumulates to quite significant total loss

So the alligator was sleeping, AO was low (orange), dot showed up and purple was correct. Perfect setup 1! So I put pending order (at M5 AIMS level if it was close), hit, but only to find out that the price retraced after some pips and hit my SL. Imagine this happens 3-4 times and the total accumulation of the lost small pips will be quite significant.

So what should I do to avoid these whipsaws? Should I strictly wait for M5 to open then retrace to green line?

Any other suggestions to avoid this nasty whipsaw?

Thanks!

HI

I have a short answer for this, as there is a long answer but it will eventually drill down to this.

1. Learn to Trade using the ~M5 AIMS level Rule. Ask Are there AIMS level to the left, if yes, are the AIMS levels to the left too close to entry or is there enough space in between that you'd be able to bring your SL to -4 or something like that? in other words, use The Three Rule Flow Chart Correctly.

2. Make a Rule of Maximum drawdown per day. e.g. 2% down for the day, quit trading and come back tomorrow. some good traders have 3 strikes and out per session / day rule.

I hope this helps

Immy