Hi,
Sorry for late answer, I was not available during a week ! As every trend trading system, it can lead to bad results during ranging periods. To avoid that I think you have to wait for a trend established and not for playing the begining one. You also have to check on higher TF. And also always put a tight stop loss ! Eventhough iti is a good system, please keep in mind there will be losses.
Secondly, if you want to play momentum trades, let your profits run because if it is the begining of the trend, then it will last so you have to maximize your profits because there will be more false than true signals.
Dont forget a trend is changing only once a time, whereas a trend established will pullback many times....so you will get a higher wining percentage when you trend a pullback, and you will get a bad winning percentage when you trade the begining of a new trend. So to get a positive equity, you MUST let your profits run when you trade a new trend, to get a high R/R ratio to tackle with the problem of bad winning percentage.
That's why I am waiting for a perfect setup : trend established and a good pullback which allow you a tight stop and a high leverage to get more pips in few minutes !!!!
Sorry for late answer, I was not available during a week ! As every trend trading system, it can lead to bad results during ranging periods. To avoid that I think you have to wait for a trend established and not for playing the begining one. You also have to check on higher TF. And also always put a tight stop loss ! Eventhough iti is a good system, please keep in mind there will be losses.
Secondly, if you want to play momentum trades, let your profits run because if it is the begining of the trend, then it will last so you have to maximize your profits because there will be more false than true signals.
Dont forget a trend is changing only once a time, whereas a trend established will pullback many times....so you will get a higher wining percentage when you trend a pullback, and you will get a bad winning percentage when you trade the begining of a new trend. So to get a positive equity, you MUST let your profits run when you trade a new trend, to get a high R/R ratio to tackle with the problem of bad winning percentage.
That's why I am waiting for a perfect setup : trend established and a good pullback which allow you a tight stop and a high leverage to get more pips in few minutes !!!!
DislikedHi Hmaoui...,my weakness sometimes guess the trend wrongly.
I see the MAs spreading...but later when I thought it was a pullback, suddenly it become changing a trend. How to avoid things like this?Ignored