DislikedHi Felicia ... Great system .. starting to work for me now ...
One question ...
I'm entering on 5 minute charts confirming the 30 min or 1 hour cornflower entry ...
But which time-frame should I use for exit?
Quite often the 12/24 cross happens on the 5 min charts ... but the 30min and/or 1 hour charts still show a healthy trade in play ..
Regards,
Gary W.Ignored
When to exit depends on how you are using Cornflower. If you are trading longer-term, use trailing stops. One possible method: when you are up 30 pips, move the stop to break even. When you are up 50 pips, move the stop to 20 pips. Keep trailing up and make the trail tighter the more pips you have. And there is the 12-24 hourly cross, as well as the 30M entry,which can be used to exit the hourly trade taken in the opposite direction.
If you're using Cornflower primarily to set up short-term trades, your entry has to be precise and your exit should be gauged by an estimation of how far the move will go. This differs for each pair and you should study each pair's past behavior and "personality." You should be aware of the pip value of the average daily range, for instance. Currency pairs have a strong tendency to, in the words of Igrok, "complete" their ADR in a given trading day. Thus you can exit when the ADR has been reached.
You should always be aware of support and resistance levels. These can be used to exit.
You can also simply exit when you have acquired a set number of pips for the day. The problem with this method is that it does not compensate for losing days. When the move is strong, you will want to stay in past your quota so as to compensate for days where a pip is as rare as a white pigeon.
Finally, you can exit when you get a 5M wick so nasty, it could impale you like an ice pick. This indicates exhaustion.
Also, pay attention to correlations between pairs. When a correlated pair starts moving aggressively in the opposite direction to your trade, you might take this as an exit signal.
