Limit entry or market entry at a level?

[Shadow Trader]

Price is approaching a level. Place a limit order there and wait, or wait for confirmation and hit the market?

The limit order gets the better price and often saves half the spread. The cost is that it fills most reliably when price is going through the level, which sometimes means catching a falling knife. Missed fills happen exactly when price bounces cleanly, which are the trades that would have worked.

The market order after confirmation gives up some price but gains information. The reversal has shown itself, so the odds feel better, though the stop distance grows.

Both approaches have costs that don't show up on the chart. Fill rate, adverse selection, and slippage all feed into the real result.

Worth considering a hybrid. Place a smaller limit order at the level and add the rest by market order if price shows a rejection. That captures some of the better price while preserving the confirmation benefit. It does add complexity and an extra spread, so it needs to prove itself in the numbers.

Which approach has performed better in the journal, and how big was the difference after accounting for missed trades?