Hello everybody,
We all have a dream: to be able to hold the profits we make on a trade, take every run to its finish, and protect ourselves from whips.
Everyone knows that it is easy to enter a trade, but usually very difficult to make a reasonable exit, so to protect their profits, many people use trailing stops (i.e stop losses that move upward with a profitable long, downwards with a short) but are still unhappy due to the simplicity of such methods, which results in most of their profits being lost.
As a possible solution, I have devised this system which I would like to share with you. I will not discuss how to enter the market, only how to exit. There is no T/P, only the S/L value which we will define as:
"The number of pips, below the last candle's closing value, at which we will terminate the trade "
Now we will actually vary the size of this stop loss via a simple calculation made at the close of every following candle once we enter a trade. I will stop here in this post because at this point several options (ATR..etc) are available, all suggestions are welcome. My own calculations are in the following post.
We all have a dream: to be able to hold the profits we make on a trade, take every run to its finish, and protect ourselves from whips.
Everyone knows that it is easy to enter a trade, but usually very difficult to make a reasonable exit, so to protect their profits, many people use trailing stops (i.e stop losses that move upward with a profitable long, downwards with a short) but are still unhappy due to the simplicity of such methods, which results in most of their profits being lost.
As a possible solution, I have devised this system which I would like to share with you. I will not discuss how to enter the market, only how to exit. There is no T/P, only the S/L value which we will define as:
"The number of pips, below the last candle's closing value, at which we will terminate the trade "
Now we will actually vary the size of this stop loss via a simple calculation made at the close of every following candle once we enter a trade. I will stop here in this post because at this point several options (ATR..etc) are available, all suggestions are welcome. My own calculations are in the following post.
Virtue finds and chooses the mean.
Aristotle, Ethica Nichomachea