DislikedThe way you analyze and had a well thought out plan....it is unbelievable that you trade only 2-3 months. What more amazing is that you trade live already......Keep up the good work.
Question though. The original system said to put SL on the other side of the breakout channel to avoid retracement whipsaw....which happen quite a bit. How long have you backtest your entries? Don't you get lots of SL being hit if you only use 15 pip SL? I know you only target 25PIPs.Ignored
First off, thanks for the encouragement. First time I've found something I wouldn't actually mind doing for a living. As far as setting the stop at the opposite side of the breakout channel, the problem I have is putting the target that high. I backtested that way and found that a lot of the trades wouldn't go that far of a distance, and I have a very strict rule of never going more than 1:1 risk/reward. Just the way my methods seem to work. The other thing is that the stop won't always be 15. It's going to be the difference from the top/bottom of the channel (whichever way it breaks) to the 1.272 fib line on my chart, so if the currency is moving more, the stop will be greater, and if the currency is moving less, it will be lower. Same thing with the targets. If the breakout channel is a total of 80 pips between high and low between 7 and 9, then the long target will be 80 pips.
Example: If the 7-9 breakout that we draw would've been double the distance from the low to the high, then all of my calculations would have doubled since my fib would have. That would have made my numbers:
TP on first at +24.2 (1.5000 fib)
TP on second at +52.2 (1.764 fib)
TP on third at +77.4 (2.000 fib)
And stop loss at -30
Hope that makes sense. If not, let me know.
