OK,
I've just backtested Jan-March on GBPJPY to get an idea of whether the 100 pip stop loss would make much of a difference in restricting losses but still staying with the trade.
The results are based on me trading perfectly which probably wouldn't be 100% as there is always room for a 'Steve cock-up' or two
1. Old 10 pip s/l rule (I use 20 for GJ only) - plus 1463 pips.
Not bad at all - why have I been so reticent about adding GJ? Hmmm.
2. New s/l rule. This rule says that if at the end of a day the trade has been up over 100 pips then s/l can be moved to break even. At plus 200, s/l is moved to +100 and so on. - plus 3013 pips.
Now, that makes a HUGE difference. I have found that I do get stopped out a little more often but I can take advantage of a market reversal or consolidation a day earlier in most cases so it would keep me more in tune with the market.
Very interesting - now I must do the same for GU & UJ and see what the results would be like.
Kind Regards
Steve
I've just backtested Jan-March on GBPJPY to get an idea of whether the 100 pip stop loss would make much of a difference in restricting losses but still staying with the trade.
The results are based on me trading perfectly which probably wouldn't be 100% as there is always room for a 'Steve cock-up' or two
1. Old 10 pip s/l rule (I use 20 for GJ only) - plus 1463 pips.
Not bad at all - why have I been so reticent about adding GJ? Hmmm.
2. New s/l rule. This rule says that if at the end of a day the trade has been up over 100 pips then s/l can be moved to break even. At plus 200, s/l is moved to +100 and so on. - plus 3013 pips.
Now, that makes a HUGE difference. I have found that I do get stopped out a little more often but I can take advantage of a market reversal or consolidation a day earlier in most cases so it would keep me more in tune with the market.
Very interesting - now I must do the same for GU & UJ and see what the results would be like.
Kind Regards
Steve