DislikedWell...my first trade on the GBP this year looked a loser....
This trade is a good example of how the Jacko "anti-hedging" strategy works to save your ass and make a good profit from a bad initial decision.
1. You sell the GBP at 1.9750... (Guess what, you are wwwwrong and the market shoots up like it has been shot in the ass)
2. It hits your stop at 1.9800
3. The market continues to more than 1.9875 (GBP is a little more volatile than Euro which is what I trade..)
4 At 1.9875, you place a Sell Stop order at 1.9800.
5. (a) If the market keep going up, your sell order is NOT triggered.
(b) If market trend reverses, it will eventually come back to 1.9800 and your sell is triggered at the price that you were stopped out...but the trend is now in your direction..
Once it comes back past 1.9750, you are in profit and in the correct trend direction. Put a trailing stop of 50 pips and continue to make money.
THE ADVANTAGES OF THIS STRATEGY IS THAT
a. IT HAS AN EFFECTIVE AND DISCIPLINED COURSE OF ACTION
b. IT GIVES YOU A SPECIFIC "ENTRY" POINT
c. IT REDUCES LARGE DRAWDOWNS
d. IT PUTS YOU BACK IN THE MARKET EXACTLY WHERE YOU GOT OUT
I have now been using this strategy for a couple of months in the Euro and it is working brilliantly.Ignored
What time frame did you trade with the above? Is it the daily charts?
Thx for your feedback!