Contents:
- Modified 10-Step Trading Strategy Scenario
- Retracement Trading Strategy
- Key Differences Between the Two Approaches
- Conclusion: Which Strategy Is More Effective?
As we refine our live trading approach under the Budget Ethical Trading Account (BETA), we are evaluating two distinct methods: the Modified 10-Step Trading Strategy and the Retracement Trading Strategy. Each approach offers unique insights into market behavior, risk management, and execution style. This post compares both models, highlighting their strengths, weaknesses, and potential applications.
Modified 10-Step Trading Strategy: Key Support, Resistance, and Risk Management in Action
Retracement Trading Strategy: Using Key Levels to Identify Trend Continuation & Reversal
1️⃣ Modified 10-Step Trading Strategy Scenario
🔹 Primary Focus: Tactical trading based on key support and resistance levels with strict stop-loss placement.
🔹 Entry Strategy:
67.00 as Key Support Level – Entry only if confirmed by a Green Elephant Bar with increasing volume.
71.50 as Hard Resistance – Immediate exit on approach unless volume supports a breakout.
65.50 as Hard Stop-Loss – Exit entirely if price falls below this level to prevent further drawdowns.
60.00 as Bargain Re-Entry Zone – Potential entry if price reaches this level and shows reversal confirmation.
🔹 Risk Management:
Volume confirmation required before any entry.
Stop-loss placement prioritizes capital preservation.
Focus on real-time decision-making based on price action.
🔹 Main Objective: Capital protection and execution discipline, ensuring the strategy adapts dynamically to real-time market conditions.
📌 Full Analysis: Modified 10-Step Trading Strategy Scenario
2️⃣ Retracement Trading Strategy
🔹 Primary Focus: Retracement-based entry and exit levels using percentage-based zones to predict trend continuation or reversals.
🔹 Entry Strategy:
100% Retracement at 104.4 – Origin of power move (October 1, 2024).
75% Retracement at 95 & 55% Retracement at 88 – Trend Reversal Zones where price is likely to reject and reverse.
45% Retracement at 84 & 25% Retracement at 77 – Trend Continuation Zones, indicating where price could resume the downtrend.
0% Retracement at 68 – Current bottom of the power move, which is a potential reversal point.
🔹 Risk Management:
Focus on retracement levels rather than hard stop-loss points.
Entries and exits are predefined based on historical power moves.
No immediate reliance on real-time volume confirmation for execution.
🔹 Main Objective: Strategic swing trading using price retracements to identify optimal trend continuation or reversal zones.
📌 Full Analysis: Retracement Trading Strategy
Key Differences Between the Two Approaches
| Aspect | Modified 10-Step Trading Strategy | Retracement Trading Strategy |
|---|---|---|
| Trading Approach | Tactical, real-time trading decisions | Predefined retracement zones |
| Entry Criteria | Based on support/resistance levels & volume confirmation | Based on retracement percentages from prior moves |
| Risk Management | Hard stop-loss at 65.50, bargain entry at 60.00 | No predefined stop-loss, relies on retracement zones |
| Focus | Active position management & dynamic adjustments | Swing trading with predefined reversal/continuation points |
| Main Strength | Adaptable to real-time market movement | Systematic approach using Fibonacci-style retracements |
Conclusion: Which Strategy Is More Effective?
The Modified 10-Step Trading Strategy is ideal for traders who prefer active trading, risk management, and real-time execution adjustments.
The Retracement Trading Strategy is suitable for traders focusing on swing trading, predefined retracement-based entries, and trend-following.
Combining elements of both strategies can provide a more well-rounded trading approach, using retracement zones as guides while executing based on the Modified 10-Step strategy’s real-time risk management.
📌 Which strategy do you prefer? Follow our live updates as we test both approaches in the BETA Trading Account! 🚀
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader Portfolio Tracker Page
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