Shorted CADJPY H4
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Simple Daily Trend Reversal Trading System
{quote} @johnsmith2nd, I personally use a fixed R:R in my trading depending on the strategy I am using. Most times my R:R is 1:2 with a partial close of around 95% of the lots and then let the remainder run to 1:3. I have used TS in the past but history has proven to me that over time it will not perform as well as say a BE + "x" pips at a certain point. I use the market pa for reversals on longer time frames (4h, Daily) with no BE or TS and I do use a BE on 1 hr charts. This has given me excellent results on both trend following and trend reversal...
Is it not possible to incorporate a trailing stop within the R:R? For example take a look at my open trades now:
You can see several trades in profit. Despite two of the trades being 60+ pips in the green, they are not near their R:R of 2:1.
Now, I don't want to lose the 60 or 90 pips respectively. I may have misunderstood the point of the R:R method, but is it not possible to have a trailing stop to capture the gained pips? I understand the formula behind R:R, but I'm aware many investors do not fully risk the calculated amount, but will incorporate price action/S&R levels to better define a stop..
1. It would be great if we could use the R:R system for taking profit, in conjunction with S&R levels (I know ebeckers was working on a way to bring this into the EA) which could possible allow to capture gained pips should there be a reversal.
{quote} Thanks for the reply. Is it not possible to incorporate a trailing stop within the R:R? For example take a look at my open trades now: {image} You can see several trades in profit. Despite two of the trades being 60+ pips in the green, they are not near their R:R of 2:1. Now, I don't want to lose the 60 or 90 pips respectively. I may have misunderstood the point of the R:R method, but is it not possible to have a trailing stop to capture the gained pips? I understand the formula behind R:R, but I'm aware many investors do not fully risk...
Anything is possible when it comes to programming. In my EA's I have 3 TP levels, a TS option, a BE + option etc etc. I have a hard stop loss which is usually placed at a recent high or low point - which quite often is the latest SR anyway or a retest of one and this becomes the figure that I set the TP's on. So my EA uses the SL setting as 100% and the TP levels are set at a % of the SL. For example I use 200% as my first TP level and remove 95% of the trade. The SL is moved to BE + x pips when it reaches 50% of the TP3 which I set at 300% of the SL so when price moves to 150% of the TP it locks in 50% of the SL as profit. I can should I wish to, set a trailing stop to activate at a specific point of the SL and also at a specific distance of the stop loss, IE I might set it to activate at 50% of the Stop Loss but trail at 100% of the stop loss and so on. I am sure if you put it to the programmer of this EA he can look at it provided it seems worthwhile and ultimately profitable. As you can see there are a multitude of variables and options that can be played with.
As I mentioned earlier, I have tested all my strategies (backtesting and live testing) and in every instance using the TS actually reduced the profitability of the strategy. My strategies tend to take advantage of the larger directoinal movements, whether that is trend following or retracement moves. Below is a screen shot showing a recent EU 1H trade - you will see where the trades opened and closed, also an EU 4H trade that is still running.
Cheers
maahome
1H:
4H:
- #2,176
- Jan 9, 2018 4:40am Jan 9, 2018 4:40am
- Joined May 2017 | Status: Trader | 1,564 Posts
I can calculate the movement of stars, but not the madness of men. Isaac N.
- #2,177
- Jan 9, 2018 4:42am Jan 9, 2018 4:42am
- Joined May 2017 | Status: Trader | 1,564 Posts
I can calculate the movement of stars, but not the madness of men. Isaac N.
- #2,179
- Jan 9, 2018 4:57am Jan 9, 2018 4:57am
- Joined May 2017 | Status: Trader | 1,564 Posts
I can calculate the movement of stars, but not the madness of men. Isaac N.
Here's an interesting conundrum.
The screen shot below shows a currency pair (USDCHF) and a commodity pair (XAUUSD) side by side. If you look in the top right hand corner of each chart you will see the bar closure timer. According to the bar closure timer the commodity pairs all seem to close an hour later than the currencies!
Is this correct and does anyone know why?
It may just be my broker but I seem to be getting dashboard signals from the commodity based pairs an hour later than the currencies!
The screen shot below shows a currency pair (USDCHF) and a commodity pair (XAUUSD) side by side. If you look in the top right hand corner of each chart you will see the bar closure timer. According to the bar closure timer the commodity pairs all seem to close an hour later than the currencies!
Is this correct and does anyone know why?
It may just be my broker but I seem to be getting dashboard signals from the commodity based pairs an hour later than the currencies!