1) There is no discretionary element in sequential.The entry,stoploss,profit taking,all have defined rules.This system was invented for large hedge funds and pension funds and these institutions need time to distribute their buy positions or cover their short positions and it is done over a period of 1-3 days and they won't be able to do that if there is any discretionary element in the system.Once we decide on qualifiers,it becomes mechanical.
2) Sequential is based on daily timeframe and it has a stoploss of 120-150 points in nifty for example.Institutions take this stoploss and also hold the winning trades for 500/700 or even 1000 points.We are short term traders and our vision is also limited.I am sure very few traders can take 150 points stoploss and also willing to hold a 800 points winning trade....we chicken out in between.This is where discretion comes in and we start looking for booking small profits though system does not tell us to book profits....same with stoploss,
we try to use our short term trading ways to avoid or reduce our stoploss .
Trade management in sequential is we have to wait for opposite side set up for thinking of profit booking or let the stoploss hit.If the stoploss is hit, the market accelerates in the same direction as demand/supply has undergone drastic shift so many reverse the position and get into the accelerating trend but that needs lots of money and courage.....if one is short,then taking a stoploss of 150 points and reversing to long needs courage .
Trade management each trader has to decide on his own....what I do is given below but that is my own add on...the system does not recommend that.
Suppose I an short at 8900 with stoploss at 9070 and the market is going against me, at 8950 I will look for a dip of 25-30 points and cover my short position temporarily so that if the market goes to hit my stoploss, I lose 30-40 points and not 170 points....if market starts trading below 8900, I will open the short position again and participate in the original side trade.....this is what I told you to do as your entry was little early.This needs little managing and helps avoiding large stops but it is not part of the system.About letting the profit run, we have to control urge to book profits as sequential is not a play for 100-120 points profits.
Hope the above is useful to traders trading sequential.
Smart_trade