Quoting coolshadesDislikedstevie,
the last line? does it mean you enter a trade irrespective of current trend/sideways market? and keep your trade open till a trend forms and sucks it in..(or get s/led)..
and what do you use to gauge a trend? higher lows/lower highs on the daily/weekly/monthly chart?
this is a newbie question so pls excuse if it smacks of ignorance..Ignored
Thanks for the question. I trade 5 pairs simultaneously and essentially I'm in the market at all times with those pairs.
When a trade is stopped out, my rules say that I will not enter a new trade on that pair until 10pm GMT that same day. I trade purely off daily charts and from my knowledge of candlestick patterns, choose whether to
1) enter in the same direction where I believe the trend has consolidated or
2) enter in the opposite direction where I believe a reversal in the trend has taken place.
Of course, the trend may stop and go into a range for a period of time but even within a range there are often what I would call mini-trends where I can pick up some pips.
My system does rely on placing the stop losses just below the previous day low or just above the previous day high and is therefore much more profitable when a strong trend is in place as we have seen in the last few weeks.
This may sound a bit sadistic but I'm looking forward to a period where the market ranges to see how my system performs. From manual backtesting it should at least break even from my knowledge of candlestick formations and, if so I believe I will have found a long term winning system overall.
My job is purely to stick to the system rigidly through bad times and good to prove to myself that this can be done successfully.
Kind Regards
Steve