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Originally Posted by Tekunda
Tell us a little bit more about your trading style, if you don't mind. You say you target only 5 pips per day. Now let us assume your first trade gets you your 5 pips. Do you call it a day then? Or do you keep on trading to get a "buffer" for loosing days?
And what happens when your first trade starts to run into negative territory? What is your s/l?
So in order to make up for a loosing trade you would need at least 2 winning trades and the problem starts when one of the trades ends negative also. Then you would need 4 winning trades to make up for the losses.
Since I think that the win-loss ratio is against you, I would certainly like to learn more about your trading style.
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Hope this post to make you a better New Year.
First I was looking for special indicators, special trading strategies from different "experts" and finally ai stopped to simple things that obviously build our everyday' lifes. I am also a Fibonacci fan and Fibonacci numbers apply in measuring many things, even markets, moving averages and stuff
I don't use large periods for my indicators because in my vision Markets are Evolving. You, me, the others, we are part of Evolution, markets have behind people to move them, so the markets are Evolving. I don't believe that some calculations (for a strategy) made months ago will be successful Today, because We Are Always Moving.
So, in my trading times I am using
EMAs (5, 8, 13, 21 rarely on H1), SMAs (5, 8, 13 or 21 rarely on H1), William (21), RSI (13), MACD and Stochastic (8,5,5 - Close - Exponential), all set up with Fibonacci numbers ofcourse . Simplest and most common indicators available anywhere on any platform or chart system. Ofcourse it's better to have a platform like
MT4 to allow settings for EMA's to Open or Close bars
Moving forward to strategies, I trade EUR/USD (preferable because it moves smoother than other pairs) and sometimes USD/JPY with lots of cash because there I have spread 0-1. Because I have no trading hours and I DON'T BELIEVE IN forex books's BULLS**T that say "don't trade outside of trading hours", because Forex is 24/24, so when I wake up I inspect the charts, in 30M, H1 and H4, I draw trend lines with my MAs, I watch Will & RSI, Stochastics above or below 50 level, MACD must be in my favor, in my direction otherwise I don't enter. (I consider MACD a important indicator, standard with 13,21,8 - Fibonacci numbers
) and I wait for Candle to close.
I never enter in the middle of a 30M or H1 (
candle). If I watch and see there is a signal in 30M I stay with that TF (timeframe). I learned that you must be disciplined and follow your personal strategies and developments in that way in order to be successful. It took me some time to get used with this idea but I succeeded.
The beautiful part is given by the Broker and Believe me, nothing is compared with the peace of mind you can have with a good Broker. You don't stress, your money are powerful and attract profit if you respect yourself, your strategies and your losses also.
Regarding entering I can't give you any details because it's part of my strategies. I gave enough information that is not secret about what I am using.
About exists and stop losses, this is interesting
I am not using a specific Stop Loss because I never trade for hours. I set a imaginary SL 5-10 pips maximum. I don't accept to lose more than 10 pips on a trade and I will give you a example.
In the attached images you will see what I am talking about. Pictures are taken at the same hour with a difference:
eu-5dec2007-5-8.png uses 5 and 8 EMA with MACD and
eu-5dec2007-13-21.png uses 13 and 21 EMA with Stochastic. 5-8 gave a early signal and indicators were favorable (@ 4-5 AM IBFX platform). 13-21 gave also a signal after 8 hours and a small pullback but with a breakout of a small trend line (@1-2PM MIGFX platform) - If you lose 2 of this kind of opportunities in 1 day that means you sleep too much
or you have no big interest in forex.
Entry was at the Green arrow that show down movement, exit at the X in the right (for those who wanted to trade full).
After the entry point (close of that H1 bar) the next bar didn't go more than 10 pips against me (if you look in M5 charts you will see that profit was taken in matter of minutes, maximum 60-120 minutes). I always calculate 1-2 pips more because of the spread so I wait. In this case if it were 13 pips against me I would get out without being sorry. But it happens rarely so I'm very confident.
Personally I don't need a movement bigger than 10 pips. I am satisfied with 5, but a 10 pips movement won't hurt me. And who wants a bigger profit can wait until first bar that closes above those MAs
Hope my post gave you a little more confidence in trading because there is nothing more beautiful than personal Evolution.
And an advice: Keep it simple, as simplest as you can, because this way you will see the details of the market. Don't be afraid to zoom, draw lines, combining simple indicators. It must be fun not sad
Thanks and wish you all a Happy New Year and many many pips to your favor.
Bogdan