Disliked{quote} Thank you for being so generous,if i want to study this stratgy,from where to start reading? thanksIgnored
I would recommend you read it from the top, I know it's a long read but it is worth it
One thing not discussed properly is the Risk Management in terms of lot sizes and how to work out what your lot sizes should be, there is a spreadsheet that mer provided but that doesn't fit within my way of trading, but if you want to know here's how I approach it:
- Find your account balance
- Find out the percentage you'd want to risk per trade (for me it's 1%)
- Find out a stop loss value but don't apply on any of your trades I use this value just to calculate my lot size, I personally use a 100 pip S/L as my value for the calculation
So here's an example
- Account Balance: £10,000
- Risk Percentage: 1%
- Risk per trade: £100
- S/L Value: 100 pips
- Pip Value: £1.00
You follow? With the Pip Value amount, you can't then divide it by how many entries you want to have e.g. if you're gonna limit yourself to 10 trade entries then that would be £0.10 per trade with no stop loss
Now.. onto the original strategy guidelines
- Open the 1-minute chart on the GBP/USD pair (feel free to experiment with others, but this is the pair that mer suggested)
- You will only start placing trades after 5 AM GMT (if your time zone is different, just find out what 5 AM GMT would be in your time zone)
- If you get red boxes, you will enter a position at the open of the next 1-minute candle, if more boxes appear you will do the same.
- When there is an opposite signal (green) you will close all trades at once at the open of the next 1-minute candle (you can use a script for this to assist you)
- You don't have to use a stop loss as when all trades are closed as a basket, you should still be in profit
Hope that helps!
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