It is a great, simple to follow method.
Something, that as many others, me too played around in the past/present some, so, if you don't mind, maybe I could add some of my thoughts to the thread.
My 3 problem as many here, is the total number of trades, the DD, and time in trades. Of course they all interconnected.
First, the total number of trades.
Since the system using M1 chart, there might be bunch of trades time to time that tends to be initiated from a similar price. Not a problem when the price turns right around from there, but a problem when not.
I believe a certain grid approach helps here, I tend to ignore price levels I have trades from, and prefer to have the positions at least 5 pips away from each.
Might miss some pip-homeruns, but sure miss some deeper drawdowns too.
Second, the DD.
Often M1 charts start to give early signals ( a breakout) and then find that the trade keep running against us with rapidly growing DD as the position grows. (sure, it can as fast turn around, IF and WHEN there is a turn), just sometimes that turn isn't coming soon enough for one's nerves and comfort zone.
One of the simple way to filter times of initial entry I use is to switch up to M5 chart, and IF there is also a corresponding color box appear, I start to do my M1 entries. Of course, there is no fool-proof way, and could use whatever TF. The point is not to restrain the number of the entries too hard, but avoid some very low volatility times when an initial entry appears without a good chance to win. I think the system rely too heavy on the need for initial loss for max pips, where I like a balance between return and DD, and not unhappy with a decent but not maximum possible return. And that straight leads to the next point...
Third, the time in trade.
I am a firm believer that the longer I stay in the trade, the more the original entry reasons and it's probabilities change. Thus I always aim to be out as soon as possible with an acceptable. good enough kind of return, and never, ever, aim to take all the pips from the table. Greed is a serious enemy!
So, as per above, I try avoid very low volatility times to any initial entry...a zoom out or switch to a higher TF can help to get a quick take how things are...for example, 7th Aug, today, Tokyo to London GU looks flat to me.
As Mer said, NFP, and such news should be avoided. Maybe start to trade after, but not during in the first few minutes, and definitely avoid if possible to bring big positions into the news, where things become a gamble.
Yes, sure, everyone in theory should have large account, and trade tiny positions, but assume, it isn't always the case, so, better address this.
But what I also very much meant on time in trade, is greed related.
If an opportunity present to take decent amount of pips/profit off the table, I believe that is the right thing to do. I am sorry, I know it is against the original system rules, but I don't think it is always a must to wait for opposite box, and sometimes that might not mean a profitable close of a cluster of trades.
However, if a claster itself has certain number of pips, I think it is the right thing to take it...for example 6th Aug, around 11gmt, there was 5 GU entry signals, between 1.5607-1.5598...if take your profit around 10-20 pips above the first entry, on the cluster, you close about 50-100 pips, and flat, ready to move on. This is especially for those with no deep pockets. Of course one can always wait for the red box, but there was no such yesterday. then end up buying another cluster of trades, and another, and then once again another before the red box appear. around 1.5518. In the meantime, since you don't know where it might appear, you cant really set a TP. In the meantime deal with swap. In the meantime the market might change for longer than it looked.
I think trading this when you have a certain number of hours, and take profit on any decent opportunity vs. wait sometimes maybe days, for hitting homeruns, would do good for an average trader with somewhat limited funds.
Sorry, such a long post. Hope understandable though what I wanted to say.
Something, that as many others, me too played around in the past/present some, so, if you don't mind, maybe I could add some of my thoughts to the thread.
My 3 problem as many here, is the total number of trades, the DD, and time in trades. Of course they all interconnected.
First, the total number of trades.
Since the system using M1 chart, there might be bunch of trades time to time that tends to be initiated from a similar price. Not a problem when the price turns right around from there, but a problem when not.
I believe a certain grid approach helps here, I tend to ignore price levels I have trades from, and prefer to have the positions at least 5 pips away from each.
Might miss some pip-homeruns, but sure miss some deeper drawdowns too.
Second, the DD.
Often M1 charts start to give early signals ( a breakout) and then find that the trade keep running against us with rapidly growing DD as the position grows. (sure, it can as fast turn around, IF and WHEN there is a turn), just sometimes that turn isn't coming soon enough for one's nerves and comfort zone.
One of the simple way to filter times of initial entry I use is to switch up to M5 chart, and IF there is also a corresponding color box appear, I start to do my M1 entries. Of course, there is no fool-proof way, and could use whatever TF. The point is not to restrain the number of the entries too hard, but avoid some very low volatility times when an initial entry appears without a good chance to win. I think the system rely too heavy on the need for initial loss for max pips, where I like a balance between return and DD, and not unhappy with a decent but not maximum possible return. And that straight leads to the next point...
Third, the time in trade.
I am a firm believer that the longer I stay in the trade, the more the original entry reasons and it's probabilities change. Thus I always aim to be out as soon as possible with an acceptable. good enough kind of return, and never, ever, aim to take all the pips from the table. Greed is a serious enemy!
So, as per above, I try avoid very low volatility times to any initial entry...a zoom out or switch to a higher TF can help to get a quick take how things are...for example, 7th Aug, today, Tokyo to London GU looks flat to me.
As Mer said, NFP, and such news should be avoided. Maybe start to trade after, but not during in the first few minutes, and definitely avoid if possible to bring big positions into the news, where things become a gamble.
Yes, sure, everyone in theory should have large account, and trade tiny positions, but assume, it isn't always the case, so, better address this.
But what I also very much meant on time in trade, is greed related.
If an opportunity present to take decent amount of pips/profit off the table, I believe that is the right thing to do. I am sorry, I know it is against the original system rules, but I don't think it is always a must to wait for opposite box, and sometimes that might not mean a profitable close of a cluster of trades.
However, if a claster itself has certain number of pips, I think it is the right thing to take it...for example 6th Aug, around 11gmt, there was 5 GU entry signals, between 1.5607-1.5598...if take your profit around 10-20 pips above the first entry, on the cluster, you close about 50-100 pips, and flat, ready to move on. This is especially for those with no deep pockets. Of course one can always wait for the red box, but there was no such yesterday. then end up buying another cluster of trades, and another, and then once again another before the red box appear. around 1.5518. In the meantime, since you don't know where it might appear, you cant really set a TP. In the meantime deal with swap. In the meantime the market might change for longer than it looked.
I think trading this when you have a certain number of hours, and take profit on any decent opportunity vs. wait sometimes maybe days, for hitting homeruns, would do good for an average trader with somewhat limited funds.
Sorry, such a long post. Hope understandable though what I wanted to say.
there is always, always another trade!!
1
He made more than $200 on one day before, so an avg. number of pips per day would be interesting to know.
