I have settled on this strategy. Comments appreciated...
I spend 100% of my time thinking about the markets current technical structure. What is currently happening in real-time? What is happening on the 15-minute timeframe? What is happening on the 60-min timeframe? What about the 1600tick timeframe? Did we just make a momentum high? Did that push up just 'reject' the previous push down? Are we in a coil? Is this ABC down or ABC up? Is this a higher low or a lower high? Is this a bull/bear flag? Is this good trade location for a long? Does trade location favor the pattern I am seeing?
I want to try to be flexible on this discretionary part as it plays out. When I get a sense of where it is going, I then wait for a mechanical scalping strategy to confirm it.
I have a few mechanical strategies lined up and optimized for profit targets and stop losses... A few short-focused and a few long-focused. All use stops for
entries and exits. I figure if they are profitable on their own, I can make them much better.
It is up then up to me to figure out where the market is trying to go and 'go-with' the long signals if odds are to upside and 'go-with' short signals if odds are to downside.
Is this a common approach? Do any of you guys do this? If you are right on the structure, you make a lot of money. If you are wrong, you stop out. It is then all about what % you are right. when you are wrong, you are wrong and you move on and wait for the next pattern and confirmation from the mechanical strategy. This has really been working for me lately and curious if this is a common approach?