DislikedHey there everyone,
What is the best way to use the 123 system, in terms of entry, exit, take profit and stop loss?
I think the 123 strategy is a great system but I cannot seem to make a steady profit with it, I keep losing as much trades as I win, and sometimes lose more than I win.
Would appreciate it if anyone can help out this noob
Thanks!Ignored
You have to keep this type of system clean and simple the 123 pattern is based on the phycological reactions of traders to other traders
Simple explanation..
The 123 long
We have a low at 1 we then have buying to a high at 2 and then a selling off down to 3 BUT the 3 makes a higher low than the 1..buyers stepped in and bought before a lower low was created and continued the down trend ..this is your 123 low formation.
The target level of your entry on this type of trading has to be 2 to 3 times the size of your stop
The way I do is simple and conservative take the low at 3 at the entry point this is your risk on the trade...just transpose the level in fornt of your entry to get 100% 200% 300% etc etc you can go on as long as you like untill your stopped
Moving of SL
When you hit 100% move SL to entry..when you hit 200% move SL tp 100% level etc etc
here is example followed by actual chart example the last signals is still live and stop would of been moved to break even 2 hours ago.. 4 signals since beg sept on this 1 swap on a 1 hour chart for a gain of around
1st signal 150 pips RR 7:1
2nd signal 235 pips reversed into short RR 3.5:1
3rd signal lost 42 pips
4 signal still live 100% hit so SL now at break even
cheers
Paulus
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