No Stress Trading

You're right. It probably just random noise. But it works day in and day out. As far as risk/reward, I don't think about it. The success comes from highly probable trades that only ask for 5 pips. It is really about grabbing a quick profit. If it goes against me, I wait for another signal and add to the position to break even or get a mall profit. I haven't had to add more than 3 trades. I know your going to say I will blow out my account, but not with money management. By that I mean my account is large and I trade small amounts. If I have to I can add more money to avoid margin call. I just cloed out a long USDJPY position on Wed. I had held it since 7-23 before the metdown. Yes it was a bad use of money, but instead of taking a $2000 loss, I took a $200 profit, plus over $2000 in swaps.

Hmm... you have a $10k account and make about $200-$300 per day with 4-5 trades. Something is wrong here. What do you mean with "small amounts"?

Your USD/JPY position size must had been around 2.7 lots(!) to get about $2,000 swap for 71 days. So phew... 2.7 lots with a $10k account isn't small - that's for sure (that is ~$2,300 for every 100 pips).

If you say you trade 12 minilots you mean you trade 1.2 lots at a time?

Regards - Xaron

Good question. I think that would be pretty hard to do if you are trading small fractions of your total purse. Again, think of this as an investment. Not speculation. I've had it go against me 500 pips already. Did not affect my total purse. Here's a question: What would be the proof of a change in long term fundamentals? Maybe falling below a support area on a 5 year chart? Now if that happened, I might consider getting out. And if you look at a 5yr chart, you will see support around 1.95 (pound). Trading fractions and buying more as it goes down and selling on the retraces will do you just fine. You will not lose 75% of your account. As I mentioned before, I will buy when there is a loss of 100 or more pips. If you did that this past Friday on the NFP, you would have done well.

It is difficult to believe but I think Bglenn's system is good.
Why difficult? because general consensus is to trade "correctly" which mainly gets your stops hit .

One shortcoming of this system that pops into my head is closing when your position is mildly in profit. Just think of it: you have probably spent 1 week or more than a month accumulating the position, patiently stomaching the pain of your account losing and then after when at last it decided to turn around you are rushing to hurl in a towel!?

I am recently spending a lot of time thinking about this issue. Why is that when I am losing I want to stick to my guns and keep on losing? and why is that when I begin to win I want to close out quickly?