|richnam ||Apr 4, 2019 2:46am | Post# 10776 |
The system is a top and bottom entry system. So I pay attention to PA at the top and bottom.
I am interested in positions at the top or bottom that are kind to my account. Positions that allow me risk 2% with a potential reward of 4% at least. but i leave a small fraction (1/4) of the initial position for 6%.
The MAs are lagging indicators and if you rely solely on them, you may be late in the game and the risk requirement then will be more than 2%. Trading the PA at the top affords me to risk 2% while increasing my lot size. It gives me the luxury of entering a position on a pair twice sometimes (now this is against the rule books you will find in the market) but it works for me as long as i keep to the plan.
I use the MAs for managing trades i am already in but not for deciding when to take one.
It works for me and my schedule. It may not work for others.
Advantages of 1:3 risk reward is I have to loose 3 times to wipe out a profit made from from 1 previous trade. So out of the 5 trades posted, I only need to win 2. Winning 3 is a bonus.