Adding to a Winning Trade (Breakdown)

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If you do wish to stick around, I will cover unreleased trade breakdowns, and some personal observations from my time as a day trader for you to read through and hopefully find some value within.e

TRADE BREAKDOWN:

asset: BTC
side: long
stop type: hard stop
result: +6.1r (trade closed)
level of interest - trend continuation, internal liquidity

reasoning for interest:
price had been locally trending towards the upside, within this local uptrend there was a level in which if lost, I would have looked for BTC to return to ht overall low it had put in the night before (35600)

Further context

Price had put in the daily high so far of that day within London session, price then had a pullback. If I know categorically that there is only a 6.25% chance London session puts in the high of the day on a Wednesday, alongside the fact price is trending, it would make sense to look for a long amongst a pullback into a sensible level of interest.

Using the fact price was uptrending I can use that to my advantage. How? I can look at where the majority of longs have opened from within that specific trend as use them being onside/offside as my invalidation for price heading higher. So as long as my level of interest comes in above or around that level using them as my invalidation would have been the best play.

Again to check for where these longs have been opening I use Exocharts desktop, dynamic profile tool reading both CVD & OI to get a read as to where those longs are.

Execution & Pulling the trigger

executed timeframe - 15m

- spike in volume
- liquidations
- trapped shorts opening into a run of liquidity

Execution of this trade was based mainly upon trapped shorts opening up into the level alongside a reclaim of the same 15m candles value area.

Invalidation - Simply enough, it was below the candle low where the new shorts had come in from. If those shorts were put back in an onside position I would want to be out of the trade

Trade Management

This trade has 1 initial tp of 35%, before then adding to the trade later on down the line, the first initial tp as mentioned before was the London high which was put in during the morning hours.Something to note on how I could have done better in this case would have been to monitor the reaction once there. Price blasted through that and much higher, although I locked in 35% which is good, i would have been better off monitoring the reaction before then taking the initial 35%.

Beyond Tp1 (Adding to the trade) - I kept the trade open overnight as price was still trending, the next morning price pulled back, and of the new trend we had a set of inefficiencies where I did not want to see acceptance into especially with me holding this long it would have been more bearish. If price saw acceptance into this region I would close out the remaining 65% of the trade.

If price dipped into the region (running liquidity) before then being able to get out of it rather than closing my trade, I would then add another 65% onto my trade, so essentially doubling my current position at the time, the market is trending in my direction, I'm already in a winning trade, it is my job to be able to maximise the rewards from that.

After adding to the trade, my “entry” of the trade had moved just below where the new low had been put in on the chart. With the plan now being should price take out that low it would have seen acceptance into the single prints, and it would make sense to close out the entire position.

Closing the Trade

I was looking for new highs to completely close the trade, the high was taken within London session, and as mentioned before, if thats the case I look for higher, hence I did not take profits until the New York high sfp’d London session high. At that point I completely closed the trade upon that reaction.

Thank you and I hope you found some value