Will there be losers?
Never any losers with this method
There will be overheads however. Just like in business you have to lease premises, buy stock, pay for advertising and marketing, pay wages etc etc.
In trading, whenever stop loss is hit this is an 'overhead' It's inevitable so just get over it and move on.
Makings of a great journal here, thanks for sharing your strategy. Do you ever trail the stop at all or are exits only taken on the close above/below the 8ema? Many thanks and good trading.
sidefx
I don't really like trailing stops but just my personal preference. If you set them too tight you can get taken out by intraday swings so I prefer the close of a daily candle. Much more meaningful
Just an example of how I set up my charts. I do the same for every pair then switch to candlestick chart and wait for a close on the daily outside of these lines.
Very simple, very unexciting. Not much use to adrenalin junkies or guys who want to be 'trading' every day but rewards can be considerable
In this example, because the trend is clearly down on the monthly I would only be looking for a sell but could understand some may go for a buy given the daily trend.
Sidefx- any currency pair with reasonably low spreads. I also prefer pairs with average daily price movements above 60 pips
So here is the GBP/CHF chart a few days on from my last post. As you can see a candle (the set up candle)has closed below the last significant low- from now on lets call it the LSL for brevity and we'll abbreviate the last significant high to LSH. .
My trade was triggered when price dropped five pips below the low of the set up candle. My stop loss was placed 20 pips above the LSL.
As you can see price has retraced to the LSL and I now have to wait and see what happens.
If I get stopped out I move on to the next trade
You have shown examples of, what looks like, 2 ways of determining LSLs and LSHs...can you explain what you like to see before placing your lines on these levels - i'm a bit confused as to what constitutes a LSL/LSH...Many thanks!
I've applied your ideas to the hrly chart to get a feel with the more frequent setups and i really like it. The SR zones the line chart makes obvious are often lost in the noise of a candle chart. I used the setup on EU last night for a very nice jink down and depending on how this current hour closes, will be looking for a potential add-on trade. Many thanks and good trading.
..after the last post i decided to reset the support line to a more significant low. The resistance level went on to signal a long before close, so i ran with it and had a partial closing order in at the hrly swing high, which it made short work of and the remainder closed out for +100 pips once my broker came on stream last night! More luck than judgement.
I won't take up any more space in your journal, just wanted to say thanks again for stimulating some ideas around how i can make your strat work for me. Good trading.
Great thread and thanks! You have opened up a totally new method of trading which is really good - the line chart along with 21 SMA removes so much "noise"!
It's interesting to note that especially with EURUSD when it's in an uptrend (same with cable), one gets nice reload opportunities as price action bounces off the 21 MA (re-tests support more often) as opposed to downtrend price action drops fast and furiously.
@coventry kid
Can you elaborate a bit about SL placement?
You mentioned in "Long term breakout..." ( post 126 ) thread that A stop loss was paced just above the previous significant low.
Would be nice if you can post chart examples as well. Thanks.
I was really getting excited about your journal and the trading method.
It would be great if you could post more trade examples and your reasoning behind them.
