Buffers for Retail Charts

The sell off the Demand into supply was good but when it gets into buying back at the demand, we were stopped out. These are also the most common feature for all retail broker out there. In my previous blog, I mention retail broker charts have less opportunity to see compare to real institutional chart.

This type of stop out is what we experiment long before. Hence the use of buffers. Maximum 5 pip below or above the Stoploss. That way any surge in order flow we are still in the position. But of course you will increase risk but also reward. Again , you need to back test this or forward test your retail chart in a year. GO back and see how many times this occur. If it is frequent, apply the buffer, if it is isn’t , dont.

For me, I will stick to my old style not giving buffers. Statistically, that has better risk even If I got stopped out. But that’s just me! Not you, which you need to find out yourself whether that is you really…I mean really!


This is part of the 20% loss of my system. As I mention before in my blog, I have only 80% winning average. Still overall , I win.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: