This comes from another thread of mine (a trade journal) and I am using an inmbalanced hedging strategy when trades go against me... however, this deals more with trades going in my favour...
I am looking at the best optimisation for a trailing stop and trailing step, and just wondering the best ways to go about it..
I am looking at 1 hour charts, and the hedging kicks in at -50 pips (for info only!)
At the moment, i am looking at BE at 20 pips, tralling stop of 50% (but will probably be closer to 40%) and a step of 10 pips...
So it works out at
20 pips: BE
30 pips: +15 pips
40 pips: +20 pips
50 pips: +25 pips
60 pips: +30 pips
The issue with 50% is that you do lose a hefty chunk of any movement...
I think more study is required (luckily I have plenty of time...) for the different pairs, as i need to correlate the liklihood of a moderate move, and set my profit accordingly, but a starting point would be good (for instacne an AUDUSD trade went on for about 4/5 days to move the required 100 pips to close out the trade once the hedging had kicked in) and yet for EURUSD, it took abut 1.5 days... This is not surpising or new, but I am wondering if i can use a factor of the ATR to set the trailing stop, so either 1.5 or 2 to keep me in the trade...
Any ideas, or thoughts??
I am looking at the best optimisation for a trailing stop and trailing step, and just wondering the best ways to go about it..
I am looking at 1 hour charts, and the hedging kicks in at -50 pips (for info only!)
At the moment, i am looking at BE at 20 pips, tralling stop of 50% (but will probably be closer to 40%) and a step of 10 pips...
So it works out at
20 pips: BE
30 pips: +15 pips
40 pips: +20 pips
50 pips: +25 pips
60 pips: +30 pips
The issue with 50% is that you do lose a hefty chunk of any movement...
I think more study is required (luckily I have plenty of time...) for the different pairs, as i need to correlate the liklihood of a moderate move, and set my profit accordingly, but a starting point would be good (for instacne an AUDUSD trade went on for about 4/5 days to move the required 100 pips to close out the trade once the hedging had kicked in) and yet for EURUSD, it took abut 1.5 days... This is not surpising or new, but I am wondering if i can use a factor of the ATR to set the trailing stop, so either 1.5 or 2 to keep me in the trade...
Any ideas, or thoughts??