Minimize risk, maximize profit and ride a trend

Recovering from many SLs taken during these days.

And positions dying at BE.

Now I opened finally some clear trades that are good for demonstration. Price is going clearly up and the pullback has finished. Time to enter.

I know that previous trades might seem chaotic a bit and most of them were taken based on experience and feeling. This one is very clear example of the system I wanted to show you.

GBPUSD retry. The first one ended up at BE.

I have opened many more trades and I am leaving the platform for now as markets are pretty boring and I'll wait to see how they develop. Nothing else I can do to help them grow. The equity fluctuates 5-10 EUR up and down with now clear direction.

Hi AdamO, thank you for the examples, I think that I have to just follow with one pair to practice the system next week because it quickly becomes a mess opening many positions on multiple pairs unless you are familiar with the system! Thanks for the examples!

One question: when do you feel like it is time to add a position to a trade on the same pair?

Will give it a try

See if i am right here.



Mn is with down momentum

On daily price is going down, so i will start selling with my rules.



Got it right?

I have an idea of how to make it more rule-oriented. I'll think about that more during the weekend and so you can. My idea is quite simple.

First of all, you don't need to catch so many trades as I do because I do not care about losing many trades in a row. In your case, at the beginning of the journey, we can focus on high probability trades. They do not bring that much potential but will be much more forgiving and mentally not that overwhelming.

The idea is that you'll enter only in the direction of MAs.

Conditions for long positions:
1. SMA5 is above SMA10
2. both SMAs slope upward
3. The H4 candle crosses the SMA5 and is closed
4. SL is placed under that H4 candle.

The contrary applies to short positions.

Let's not break rules for the first few weeks until you get comfortable. If you find SMAs going sideways, do not enter the trade.

Please share your trades here. I'll reduce trading so I mostly follow them too.

At first, I'd advise you to add to trade when there is a signal. So not considering it as adding but trading another signal. Later, you'll get the feeling yourself. It is very difficult to describe as it is many times about unconscious knowing that you get because you have seen that situation so many times and you still do not know what you see but you feel it.

I would not add if the position is less than 50 pips in profit. But still, it should be because of the signal and not because you are currently in profit. If you add and a position goes against you, you're losing much faster because you have now 2 trades. So entering should be always because there is a huge chance on our side.

So basically, a new signal = adding to the position.

You are definitely trading differently so I do not feel competent to answer whether you are right there or not. But definitely, you are trading with a trend and adding to the position so the main concept seems to be the same. I don't consider entering and exiting the trade very important so the question is whether you are keeping your risk linear while your potential reward exponential. If you do, good for you. If you do not, you still can be a very profitable trader.

What I do is not a holy grail nor any special kind of trading. Jesse Livermore was famous for being the richest person in the world but he seemed to be very successful at ignoring risk too. But what he was doing is the same we do here.

I love doing it on the forex market because we can use huge leverage and even relatively small movements can make you decent money.

Very important message for equity builders. You have probably a hard time these days and weeks as movements are not strong and markets are not decided where to go. This is also part of the trading and will happen very often. There is no way how you could avoid these periods. It is the price you have to pay in order to be in the trade once it moves in your direction and many trades.

Don't get discouraged.

Here are my first 2 entries according to the rules

Have you managed to move SL to BE?

I am taking loss after loss these days. I do not like these periods but usually when they finish there is a great reward waiting for us.

Markets finally moved and I am building heavily and aggressively on many pairs now.

I managed to add to the position at a very good price on CADCHF.

Very clean break on EURCAD

AUDCAD has also developed well so far

Hi AdamO,
the trades I opened got stopped out.
Now I opened new ones, some of them are like yours but late entries, I'll give some larger SL.
How do you determine when it is time to move SL to BE? If I do it too soon I might close a good trade...

Thank you

Do not get discouraged. Beginnings are really hard.

Regarding moving SL to BE, you have to choose yourself if you prefer limiting risk by moving fast or maximizing profits by moving only when you feel that price is not going to hit it again.

Moving fast will decrease your DD drastically but you'll miss some huge winners. Moving slowly will make you a headache when the market is not moving. I personally prefer moving when the price is going in my direction for some time because I prefer huge profits and I am OK with a DD from time to time.

This decision is going to influence your results. I feel confident trading even without SLs because I do not mind closing a losing trade anytime it does not do what I expected.

I'd like to give you some specific answers but I do not have any. But from your question, I guess you have a similar mindset as I have so do not be in a rush and let the market do its job.