Anyone tried trend following with this method? I've been experimenting with using this method for entry signals and holding a trade till the market takes out my stoploss. It looks to be quite a profitable play offering RR of 1:3 and above. Of course, the win rate suffers.
EXAMPLE:
USDCHF H1(See Chart)
Entry 1: 0.9227, SL: 0.9207
Entry 2: 0.9267, SL: 0.9247
Entry 3: 0.9335, SL: 0.9315
Move entry 1 to BE after Market moved 1R in our favor. Progressively move SL to the next swing low. Enter 2nd position if there's a signal, move entry 1's SL to where entry 2's SL is at, and so on. Basically, the second trade onwards would be free. We keep averaging up till we run out of margin or the market takes us out. The USDCHF chart shows that the market would have offered 1:5 on entry 1. Of course, there will be a lot of instances where we BE or suffer a small loss. Most likely winrate would drop to below 50%. Drawdown would be terrible.
EXAMPLE:
USDCHF H1(See Chart)
Entry 1: 0.9227, SL: 0.9207
Entry 2: 0.9267, SL: 0.9247
Entry 3: 0.9335, SL: 0.9315
Move entry 1 to BE after Market moved 1R in our favor. Progressively move SL to the next swing low. Enter 2nd position if there's a signal, move entry 1's SL to where entry 2's SL is at, and so on. Basically, the second trade onwards would be free. We keep averaging up till we run out of margin or the market takes us out. The USDCHF chart shows that the market would have offered 1:5 on entry 1. Of course, there will be a lot of instances where we BE or suffer a small loss. Most likely winrate would drop to below 50%. Drawdown would be terrible.
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