Lately I came to suspect that ive just been greedy. I only want/need 50-100 pips a week so why set huge tps?
For that matter why trade such monstrously volitile pairs like gdp/jpy?
Eur/usd+ usd/jap have 3 point spreads on my platform, and are even a bit easier to predict in their movements.
So ive just been using my knowledge of chart reading- which is at best at a break even level in the long term, and applying it to less greedy frames.
at 5pm when i get a new day candle i read these two charts, decide which way they are going and set a 13 pip tp. This scalping method got me 100 pips last week and I haven't been wrong once: after all even if it goes in the other direction, even with the little volatility of these two pairs my tp tends to get hit by the next day.
Only problem is my only exit strategy really is a tp. My Sl has to be set far enough that it can move enough and still be likely to hit my tp. So if i actually had a losing day I could actually have awful losses: like a weeks profit lost in one day.
So profit/loss risk ratio is really rough. Basically it feels like gambling but that the probability is tipped in my favor.
Is this a horribly foolish method in the long run?
For that matter why trade such monstrously volitile pairs like gdp/jpy?
Eur/usd+ usd/jap have 3 point spreads on my platform, and are even a bit easier to predict in their movements.
So ive just been using my knowledge of chart reading- which is at best at a break even level in the long term, and applying it to less greedy frames.
at 5pm when i get a new day candle i read these two charts, decide which way they are going and set a 13 pip tp. This scalping method got me 100 pips last week and I haven't been wrong once: after all even if it goes in the other direction, even with the little volatility of these two pairs my tp tends to get hit by the next day.
Only problem is my only exit strategy really is a tp. My Sl has to be set far enough that it can move enough and still be likely to hit my tp. So if i actually had a losing day I could actually have awful losses: like a weeks profit lost in one day.
So profit/loss risk ratio is really rough. Basically it feels like gambling but that the probability is tipped in my favor.
Is this a horribly foolish method in the long run?
The only stupid question is the one not asked