I'd like to discuss strategy that I've been testing on a demo account since the beginning of Des 2009.
DATE: 2 Feb 2010
Started with $ 1,000.00
Currently @ $ 8,592.50
UPDATE: 9 Feb
$ 10,000.00 reached
Here it goes:
I start on the Daily chart, determine the trend. If trend is down, I only go short. If trend is up, I only go long. I go to H4 & H1 to determine SR levels. Draw lines and Fibonaci's. Enter starting positions on the M15 chart. Wait for pullbacks and enter close to SR levels.
I set up a martingale using 20 PIPS. The sequence is 0.1, 0.1, 0.2, 0.4, 0.8, 1.6, 3.2, 6.4... I have never gone above 6.4 so far. I have even traded against the trend on the EURUSD the last few weeks and made a lot of PIPS. But I would not recommend it.
If the first lot goes -20 PIPS, the next position will be triggered. At this stage I set the first position to break even. When the second lot reaches +20 PIPS, the first position is closed and I'm up 20 PIPS ($20) on the second position.
If the third lot is triggered, I'm -60 PIPS (1st -$40 + 2nd -$20 = -$60) and the third position is triggered @ 0.2 lots. I move the second lot to break even and the first lot to TP -20 PIPS. If the third lot goes +20 PIPS, I'm up $40 - $20 of the first lot = $20. The second lot is closed at break even. At this stage I close half the third lot and close the first lot. That means I break even and so far have $0 profit.
The third position (0.2 lots) are now (0.1 lots) and becomes the first position.
You will find that you set yourself up against the pullback until the trend is back in action and then I am set for the longs runs (50-100 PIPS)
My aim was to get 100 pips a day, but I've made more every day.
Let me hear some comments. Thanks
ADDED LATER:
I should have added that I do take news releases in consideration, never enter just before or after news releases. And everyday I will look at some fundamentals just get a feeling of what is going on.
TIP: after a news release, if there is a spike against the main trend, I will wait for it to stall and then start with the first position going with the trend.
CHANGE ADDED 4 Feb
What happens if the third, fourth.... positions are triggered....?
3d position (0.2): If the 3d position is a winner ($40), I would be -$20 on the 1st position and the 2d position breaks even and is closed. TOTAL profit so far is $20. At this stage I would close the 1st position ($-20) and close half of the 3d position (0.1 lots). The TOTAL PROFIT WOULD BE $0.
The 3d position will become the 1st position and the grid has moved up.
4th position (0.4): If the 4th position is triggered and is a winner ($80), I would be -$40 on the 1st position and -$20 on the 2d position and the 3d position would break even. At his stage I would close the first three positions (-$60).
(Change) I always want to keep (0.1) open on the highest position. That means (0.3) of the 4th position will be closed with some profit, and the (0.1) will be set to 50 PIPS TP. The 4th position will become the 1st position of the grid and the whole grid moves up.
4th position ($80). Closed ($60) - 1st three positions (-$60). TOTAL PROFIT WOULD BE $0. But floating profit would be ($20). You will be in a better position if the pullback ends and the main trend is back in action.
DATE: 2 Feb 2010
Started with $ 1,000.00
Currently @ $ 8,592.50
UPDATE: 9 Feb
$ 10,000.00 reached
Here it goes:
I start on the Daily chart, determine the trend. If trend is down, I only go short. If trend is up, I only go long. I go to H4 & H1 to determine SR levels. Draw lines and Fibonaci's. Enter starting positions on the M15 chart. Wait for pullbacks and enter close to SR levels.
I set up a martingale using 20 PIPS. The sequence is 0.1, 0.1, 0.2, 0.4, 0.8, 1.6, 3.2, 6.4... I have never gone above 6.4 so far. I have even traded against the trend on the EURUSD the last few weeks and made a lot of PIPS. But I would not recommend it.
If the first lot goes -20 PIPS, the next position will be triggered. At this stage I set the first position to break even. When the second lot reaches +20 PIPS, the first position is closed and I'm up 20 PIPS ($20) on the second position.
If the third lot is triggered, I'm -60 PIPS (1st -$40 + 2nd -$20 = -$60) and the third position is triggered @ 0.2 lots. I move the second lot to break even and the first lot to TP -20 PIPS. If the third lot goes +20 PIPS, I'm up $40 - $20 of the first lot = $20. The second lot is closed at break even. At this stage I close half the third lot and close the first lot. That means I break even and so far have $0 profit.
The third position (0.2 lots) are now (0.1 lots) and becomes the first position.
You will find that you set yourself up against the pullback until the trend is back in action and then I am set for the longs runs (50-100 PIPS)
My aim was to get 100 pips a day, but I've made more every day.
Let me hear some comments. Thanks
ADDED LATER:
I should have added that I do take news releases in consideration, never enter just before or after news releases. And everyday I will look at some fundamentals just get a feeling of what is going on.
TIP: after a news release, if there is a spike against the main trend, I will wait for it to stall and then start with the first position going with the trend.
CHANGE ADDED 4 Feb
What happens if the third, fourth.... positions are triggered....?
3d position (0.2): If the 3d position is a winner ($40), I would be -$20 on the 1st position and the 2d position breaks even and is closed. TOTAL profit so far is $20. At this stage I would close the 1st position ($-20) and close half of the 3d position (0.1 lots). The TOTAL PROFIT WOULD BE $0.
The 3d position will become the 1st position and the grid has moved up.
4th position (0.4): If the 4th position is triggered and is a winner ($80), I would be -$40 on the 1st position and -$20 on the 2d position and the 3d position would break even. At his stage I would close the first three positions (-$60).
(Change) I always want to keep (0.1) open on the highest position. That means (0.3) of the 4th position will be closed with some profit, and the (0.1) will be set to 50 PIPS TP. The 4th position will become the 1st position of the grid and the whole grid moves up.
4th position ($80). Closed ($60) - 1st three positions (-$60). TOTAL PROFIT WOULD BE $0. But floating profit would be ($20). You will be in a better position if the pullback ends and the main trend is back in action.