I know it has been said and done before. "Use small targets with large stops." Yes, it is "unconventional thinking" because it does not adhere to logical risk/reward ratio but, outside of managing risk, there isn't a definitive right and wrong.
This method is simple and very similar to one which gave me over a 90% success rate. I foolishly abandoned that method years ago because of one bad trade. The trade ended up being bad because I didn't stick to the plan.
Since then, I made several attempts to trade with my own and borrowed methods. All of which made money some of the time but lost over the span of several months.
So, here it is;
1. Only trade CHF/JPY - This pair does trend but it tends to be a lower risk volatile pair. Other pairs will work but they trend more and this method is based on catching small price movements over time, not trends.
2. Risk/Reward is inverted - Risk 5 for the reward of 1. I've been working with smaller time frames but using larger time frames will work.
3. Never enter at market price - 99% of the time there are a few more pips to be had equal to or even more than the spread.
4. Use an oscillator for a trigger - I use a standard stochastic.
I plan on posting summary at the end of each week.
This method is simple and very similar to one which gave me over a 90% success rate. I foolishly abandoned that method years ago because of one bad trade. The trade ended up being bad because I didn't stick to the plan.
Since then, I made several attempts to trade with my own and borrowed methods. All of which made money some of the time but lost over the span of several months.
So, here it is;
1. Only trade CHF/JPY - This pair does trend but it tends to be a lower risk volatile pair. Other pairs will work but they trend more and this method is based on catching small price movements over time, not trends.
2. Risk/Reward is inverted - Risk 5 for the reward of 1. I've been working with smaller time frames but using larger time frames will work.
3. Never enter at market price - 99% of the time there are a few more pips to be had equal to or even more than the spread.
4. Use an oscillator for a trigger - I use a standard stochastic.
I plan on posting summary at the end of each week.
