While my real account plods along I thought I'd try an experiment with carry trade pairs. I got the idea from somone in the oanda forums. I don't think it's overly revolutionary but it is completely contra to my live trading style.
I find experimenting with demo accounts both stops me experimenting with my real account plus broadens my knowledge of the industry.
audjpy, gpdjpy and usdjpy, going long only.
1% of balance per trade.
s/t and t/p 10% balance.
If no open trades, open a position if ATR(1) > ATR(99).
while ATR(1) > ATR(99) and not an inside day enter if average price - 2(ATR(99)) > current price.
If average price + 5(ATR(99)) < current price, close all positions.
I use oanda, so no annoying "lots", I can just trade percentages of the account. For those that don't know, ATR is Average True Range which is the average of the lengths of the bars (high minus low). I didn't want to enter while there is an inside day or if there is almost no movement because I might then be entering into too many trades.
I'll open the first positions just before the open of the Monday London session. I've got a sub account for each pair, so I can track the differing performance of each.
The concept of scaling in losing positions seems counter intuitive but at the same time strangely appealing in a masochistic kinda way.
EDIT: Charts are daily and checked only once per day at the same time, around the open of the London session.
I find experimenting with demo accounts both stops me experimenting with my real account plus broadens my knowledge of the industry.
audjpy, gpdjpy and usdjpy, going long only.
1% of balance per trade.
s/t and t/p 10% balance.
If no open trades, open a position if ATR(1) > ATR(99).
while ATR(1) > ATR(99) and not an inside day enter if average price - 2(ATR(99)) > current price.
If average price + 5(ATR(99)) < current price, close all positions.
I use oanda, so no annoying "lots", I can just trade percentages of the account. For those that don't know, ATR is Average True Range which is the average of the lengths of the bars (high minus low). I didn't want to enter while there is an inside day or if there is almost no movement because I might then be entering into too many trades.
I'll open the first positions just before the open of the Monday London session. I've got a sub account for each pair, so I can track the differing performance of each.
The concept of scaling in losing positions seems counter intuitive but at the same time strangely appealing in a masochistic kinda way.
EDIT: Charts are daily and checked only once per day at the same time, around the open of the London session.