Hi again, And after 50 pips lock in 50%? And so on...But what I am going to do with 110 pips? LOL. Good idea. Any more good ideas?
Baruch, Sorry I did not illustrate that example well enough. What I am suggesting is that after you have got for example 40 pips of profit you might try to then lock in 40% of the maximal gain after that. So for instance after 40 pips of profit you move your stop loss so that 40% of that 40 pips (= 16 pips) is locked in. If you dont get stopped out and price suddenly rises by say another 50 pips you then will be up by 40 pips plus 50 pips = 90 pips. So you lock in 40% of that gain = .4 times 90= 36 pips and so on. So using this method your trade is allowed to breathe but you still lock in gains when they are available. How does that sound? It may not be apropriate to your requirements but its something to think about ( and talk about ) peugeot
Baruch, I have found that 40% is the optimum balance between locking in some gain and avoid being stopped out. Any higher than that figure and one is more likely to be stopped out. This is important as the best profits in my "opinion" are earned via riding the bigger movements. regards
Baruch, To just to be nice and clear what I am saying is that I think you could try and manage your initial profits exactly as you have been doing so far, but once you have something like say 40 or 50 pips (or whatever figure you select) then you can use my 40% rule to lock in profits. So when there are only small movements in the market your rules apply but when there is a 200 pip movement in the market my 40% rule could kick in and thus ensuring you book your share of the sovereigns . The above is simply my description of a principle and you may wish to toy with it. It might be an idea to see how this would pan out on a demo because I would certainly regret it if you lost money because of my theories. Then at some later stage maybe trade for real assuming the theory has not found to be complete bunkum. I hope that sounds reasonable. Good luck
OK - but I like to test all new ideas in realtime to see if they works and suits my style. If I lose some pips? Who cares? I have lost many hundred pips already trying all kind of exit-ideas, but not found the holy grail. I have lost many pips taking my profit too soon - and many pips taking my profit too late. I think all traders have the same problem. Demos? Well, they are good for newbies.