The pure IB trading method suggests that SL is moved to the BE point after taking 1/2 profit at 1/2 ATR.
Up until now, the EA has been moving the SL to the opening price at this point. Does giving the price more room to move improve the chances of catching the trend again after a small reversal? Well the figures are as follows:
EURUSD 15M, ZERO SL, 3001 trades, 2522 wins (84%), -£460.96
EURUSD 15M, BE SL, 2962 trades, 1315 wins (70%), -£451.00
EURUSD 30M, ZERO SL, 1765 trades, 1500 wins (85%), £9.51
EURUSD 30M, BE SL, 1706 trades, 1224 wins (72%), -£4.63
EURUSD 1H, ZERO SL, 929 trades, 766 wins (82%), -£178.71
EURUSD 1H, BE SL, 904 trades, 639 wins (71%), -£181.30
As expected the win ratio drops, as we're now setting a SL at the BE point for the trade as a whole, rather than the zero point for the second half of the trade. What we don't see is any major change in profit, so we could assume that there are as many trades that carry on to hit the TP as do hit the SL.
As with all the analysis so far we need to revisit them once we've started to use indicators and, hopefully, isolated the majority of losing trades.
Up until now, the EA has been moving the SL to the opening price at this point. Does giving the price more room to move improve the chances of catching the trend again after a small reversal? Well the figures are as follows:
EURUSD 15M, ZERO SL, 3001 trades, 2522 wins (84%), -£460.96
EURUSD 15M, BE SL, 2962 trades, 1315 wins (70%), -£451.00
EURUSD 30M, ZERO SL, 1765 trades, 1500 wins (85%), £9.51
EURUSD 30M, BE SL, 1706 trades, 1224 wins (72%), -£4.63
EURUSD 1H, ZERO SL, 929 trades, 766 wins (82%), -£178.71
EURUSD 1H, BE SL, 904 trades, 639 wins (71%), -£181.30
As expected the win ratio drops, as we're now setting a SL at the BE point for the trade as a whole, rather than the zero point for the second half of the trade. What we don't see is any major change in profit, so we could assume that there are as many trades that carry on to hit the TP as do hit the SL.
As with all the analysis so far we need to revisit them once we've started to use indicators and, hopefully, isolated the majority of losing trades.