Hi ET - I've been studying and using methods similar to this (www.elitetrader.com/et/index.php?threads/fib-expansion-and-retrace-in-forex.223293/) combined w/ a few other ideas that I enjoy using. Either way, I'm starting to see the strategy and tools used isn't nearly as important as the mindset implored. My current problem is that when trading these quick ranges, I either hold for too long or the PA shakes me out (just uncertainty). Maybe it has to do w/ the recent market structure, but I don't wanna put blame on the market. I can pick 'successful' trades out and trade them but often lose them or flip it too early. What pip goal should I aim for, for these scalps? I know the thread above says to use the fib levels, but many, many times the range is so tight that the spread versus the PA isn't even worth it.
Do stats on all your trades, then use targets based on probability. I think that's some sound advice, dont forget to adjust for volatility.
Look at 300 winning trades, find the "mean" pips that were profitable, take 90% of what you can capture on average. Again looking at 300 winning trades find the "mean" of how much pips were against the trade to find correct amount to risk. Using 300 winning trades find average amount of time of trade till you got to breakeven, so on all trades when this time rule is hit, your new target is breakeven plus one pip. Often times traders overstay trades "hoping" to get target when real goal to capital preservation.
It's hard to say without seeing a picture in a whole (I mean knowing your trading instruments and system you use). What's your average lot size and margin for a trade/account equity ratio? My ratio on Tickmill is 1:100 (margin for trade/acc. equity), average lot size 0.1-0.3 lot. Don't hurry for profit, grab small but many pips. If you are knocked out too early/frequently you should scale down with your lot size, overstay those tricky moments, etc. Spend some time on money management, it's simple calculations. 10 trades with one MM setup 10 trades with another, then compare. See correlations between your MM and success from trades. Empirical observation rules.
it's not only based on the leverage ratio, it also depend on what amount deposit you had , for said you had 100 usd at 1:100 tickmill account, using 0.1 -0.3 lot size would do harm to your account . better use the minimum size, 0.01 lot. as pips target using fibo it's all depend on which TF fibo drawn, better use higher TF on fibo, and lower tf on entry confirmation. and in term of quick market movement, a tool such trade manager are good to try, it's always to had all order automatically equipped with exit level.
very high risk trade in your Tickmill account.. But it is your style,, i cant say it is wrong or right but i am curious with how much is your take profit pip?and your risk per trade