+1 take care, i am with you on another trade. do not get caught unfollowing your plan no mather anyone or any source is tempting to do so. stick to your plan. do not give way to emotional instability.
No, conservatively. Through numerous backtests, I discovered that moving the stop to break-even after a certain number of pips (25 pips in my case) is the optimal way to day-trade the Forex. Why? Because I noticed that most of my winning trades do not move 25 pips in my favor, then come back to my entry point, then move again in my direction. They move 25 pips and almost never return to the buy/sell point. On the other hand and by definition, the losing trades will AWAYS return to my entry point, and then burn the stop of course. So by moving the stop to break-even, I eliminate most losing (or mediocre) trades right there. Of course this number is related to the specific system I am trading and has no magical value in itself.
Thanks Boskop. And don't worry, I never listen to anyone, I trade my system with (almost) zero emotion and that's it.
Keep up the great work. CAD of all yen/crosses? Stop at break even after 25 pips? This would also decrease the positive expectancy quite well I would assume.
Absolutely. And speaking of Australian dollar, AUD/CAD has now formed a triple-bottom formation (15min chart), or so it seems. Usually this type of formation is pretty hard to break during the Asian session. I do not trade that way but it's just something to keep in mind...
Thanks Contra. Yes the only signal I received yesterday was from the CAD/JPY. Well, don't forget that the average winning FX day-trade will give you about 75 pips profit, on average, so a 25 pip profit that's already one third of the move. Not in my case, this technique increases the profitability of my system and significantly reduces its maximum drawdown at the same time, which is fine with me
This thread is amateur hour. 75 pips a day in the lowest vol-handle we've seen in 5 years. And you've posted a perfect losing %.
Ever heard of the word average? And I did not say 75 pip profit per day but per winning trade, on average!! On some day-trades I pocket 250 pips or more easy, on some others only 40 pips. That's just an average, corroborated by almost 15 years of historical (and live) data,