This USDCAD trade is 100 pips + in the money. Have moved the stop to breakeven and will hope to cash out 1/2 the position at 1.1100
Cool! 1/2 the USDCAD position cashed out at 1.1100 (while I was mid-flight ), now I will see how patient I can be with the rest and hopefully get to 1.1300 or so, that would be great. There are so many cool setups today, but I think that I will wait for some retracements before jumping on any of them. Things like shorting the GBPUSD and AUDUSD look really good to me right now, I will wait for the double tops or sHs to form (I guess it depends on how you view the charts) before I jump on anything and I will post them here.
OK, the big fat bearish 1hr candle has scared me into thinking that it may be best to exit the remaining lots...
Hi fxjake, glad to be of help... I did use large stops for a while and worked great. Until it stopped. I do have rule to move to paper after net 3 losses in a row. After catching the breath, and making sure there is no structural change in the market, start again with real money. So my max drawdown is small. But still unwound couple of months of profits. Profit/largest drawdown ratio was high and after some calcs, finally concluded that larger stops do not add value for me. Small stops lead to smaller drawdowns, and one can instead increase bet size and get same or better effect. So, decided to diversify into more than one system & more than 1 market - fx and shares. What is your experience with drawdowns ?
Austrijec Thanks for the post. I agree that the drawdowns can be severe. However, I rarely have a drawdown of significance because my win ration is so high and I do not risk a lot per trade. With an 80% win ratio it is difficult (but not impossible) to get 5 losing trades in a row. Also, risking a small amount, less than 2% per trade, means that you are not really going to have any terrible drawdowns. If you change either of those factors - win rate or risk per trade, then you will obviously get into trouble. So far I have had a 3.4% drawdown, so it has not been too bad.
Likely to BUY the GBP/CHF pair sometime during the European session, in case anyone is interested........
This has run over 120 pips in the expected direction, so my stop is now at break even to reduce the risk.
This has fallen over 200 pips from the entry price, so to reduce my risk I have moved the stoploss to break even.