Well I play the simulator, and try out diffrent money managent tecniques .
I tried the following out on the euro/usd for the months march to sep 2004.
I dont use the sytem bcoz i can get better trades when i go on a few more paramters other than the set rules of the system in consideration.
This is the systm i had used .
On the 1 hr chart look for the macd histogram to either fall o r rise, i.e. the distance between the macd line and the signal line is widening. (lets take the example of going long)
Then on the 5 mint chart play on the stocastics, i.e. everytime it gets into a buy/sell config from a over bought /over sold, in our exapmle when it gets into a buy config from an over sold config , on the 5 mint chart at the same time the 1 hr macd is in buy config.
I tried the following:
Buy at 10 pips SL and target 30 pips. : result capital depletion.
buy at 20 pips SL and target 20 pips: result 60% sucess.
Buy at 50 pips SL and target 20 pips: result 83% sucess.
Buy at 20 pips SL target 60 pips: result 34% sucess.
In all i had over 100 trades .
All I am saying is that aiming for 2 -3 times the stop loss may not allways be a prutent idea. One needs to investigate probability of the trade being a success.
Yes the ideal trade setup will be profit 2-3X stop loss and win probabilty over 60%. If you have such a sytem pls let me know about it.
I tried the following out on the euro/usd for the months march to sep 2004.
I dont use the sytem bcoz i can get better trades when i go on a few more paramters other than the set rules of the system in consideration.
This is the systm i had used .
On the 1 hr chart look for the macd histogram to either fall o r rise, i.e. the distance between the macd line and the signal line is widening. (lets take the example of going long)
Then on the 5 mint chart play on the stocastics, i.e. everytime it gets into a buy/sell config from a over bought /over sold, in our exapmle when it gets into a buy config from an over sold config , on the 5 mint chart at the same time the 1 hr macd is in buy config.
I tried the following:
Buy at 10 pips SL and target 30 pips. : result capital depletion.
buy at 20 pips SL and target 20 pips: result 60% sucess.
Buy at 50 pips SL and target 20 pips: result 83% sucess.
Buy at 20 pips SL target 60 pips: result 34% sucess.
In all i had over 100 trades .
All I am saying is that aiming for 2 -3 times the stop loss may not allways be a prutent idea. One needs to investigate probability of the trade being a success.
Yes the ideal trade setup will be profit 2-3X stop loss and win probabilty over 60%. If you have such a sytem pls let me know about it.