In this thread I want to test the WPS trading method introduced by free84. Credit has to be given to him. I was eyeing this method some time ago but I didn't see the merit until now that is. It's simple enough, it's like weekly scalping trading the main trend.
Strategy
Currency pair: gbp/jpy
Timeframe: H4
For long:
20 pips above the break of high price of the first blue candle or the most recent peak while observing
the pivots and resistances level.
For short:
20 pips below the break of low price of the first red candle or the most recent valley while observing
the pivots and supports level.
Initial profit target: 400 pips
Stop loss: 200 pips
Initial Trailing stop: 200 pips
Note: The best is when prices make one trend for a week, or at most 2 productive trends.
Strategy:
Take one trade at beginning of a week. If stop loss, take second trade of opposite direction when meets condition above. If stop loss for second time that's it for the week. Wait for the following week. Only 2 stop losses for one week. If prices jump up and down more than 2 times during a week that means market is sideways.
Exit: When prices open above/below the Wonderfull Stop Line of the opposite direction of trade.
2nd option is to stop by Trailing Stop mechanism.
3rd option is to stop when prices break a slanting trendline.
4th option is to stop at fixed target pips amount say 100 pips or 200 pips.
After exit that's it for the week. Wait for the following week for new entry. It's always risky to enter for the 2nd time for one week.
Money management:
I would adjust the entry lot so that if I lose it would only reduce 2% of my account balance.
Simple enough. Using H4 means I follow main trend which is less whipsaw, no hurry and no overtrade. More trade means more risk to stop losses and more spread to pay, more headache, more emotional turbulence and more time on my computer. I can have productive trades, less stop losses and more time for other things.
Azzity, 22 February 2009.
Strategy
Currency pair: gbp/jpy
Timeframe: H4
For long:
20 pips above the break of high price of the first blue candle or the most recent peak while observing
the pivots and resistances level.
For short:
20 pips below the break of low price of the first red candle or the most recent valley while observing
the pivots and supports level.
Initial profit target: 400 pips
Stop loss: 200 pips
Initial Trailing stop: 200 pips
Note: The best is when prices make one trend for a week, or at most 2 productive trends.
Strategy:
Take one trade at beginning of a week. If stop loss, take second trade of opposite direction when meets condition above. If stop loss for second time that's it for the week. Wait for the following week. Only 2 stop losses for one week. If prices jump up and down more than 2 times during a week that means market is sideways.
Exit: When prices open above/below the Wonderfull Stop Line of the opposite direction of trade.
2nd option is to stop by Trailing Stop mechanism.
3rd option is to stop when prices break a slanting trendline.
4th option is to stop at fixed target pips amount say 100 pips or 200 pips.
After exit that's it for the week. Wait for the following week for new entry. It's always risky to enter for the 2nd time for one week.
Money management:
I would adjust the entry lot so that if I lose it would only reduce 2% of my account balance.
Simple enough. Using H4 means I follow main trend which is less whipsaw, no hurry and no overtrade. More trade means more risk to stop losses and more spread to pay, more headache, more emotional turbulence and more time on my computer. I can have productive trades, less stop losses and more time for other things.
Azzity, 22 February 2009.
Attached Image (click to enlarge)
-Azzity
