|slowlyslowly ||Oct 26, 2019 5:54pm | Post# 11320 |
Hi Mizi and everyone else.
For information I don't trade exactly as BK8 describes in his first post. I did to start with but seemed to have too many losses due to counter trends, so I added a few tweaks of my own. I have been trading on and off for about 15 years and this is the first time I have been profitable, although the equity curve above is only for the last 2 months and will need much longer to show that I can do it consistently. It seems to work well when you hit a trend, but not lose too much if the trend stalls and we get false signals in a ranging market.
1. I will only trade in the direction of the long term trend
2. When we have a pullback, wait for the price to cross back over the 5SMA
3. When this happens I look at the price action to try and determine if there is a clear reversal (pin bars, engulfing etc)
4. When I trade I put my stop behind the previous high/low
5. I open 2 trades, one with R:R 1:1 and the other with the same SL but no TP
6. If my TP is hit then move the other to BE and trail as it continues moving in the right direction.
7. I set and forget (a bit). Once I have set a position I do not cancel early... patience is a virtue. It gets left until SL or TP is hit.
I have quite a small account so started with 5% risk per position (split into 2 trades) This will gradually reduce as my capital increases. However, this is my absolute maximum, and is often less as due to the large stop loss I am usually only trading 0.1 lots for each trade. Again, this may change as my capital increases.
Like I said this is very early days but looks promising. I hope this helps anyone looking to replicate these results.