How Can I Improve This Technique?

Past a month, i'm using a system and so far it's gives me >90% profit trades. It's 8H candlestick trading. I break a day (24 hrs) into 3 candles of 8H. Asian, europe and American market time. With the use of daily SnR, i can predict the market more accurately using price action. If the previous candle closes below the R, i'll go for sell and vice versa. My trades only last for 8 hours. By average i can get 25-30 pips for EU pair. [i only trade EU]. Now the question is How Can I Improve This Technique?

Another question is, why are you trying to 'improve' an already working technique??

Sinqua, i only tested this for a month. May be i missed something or the last month the market was danced according to my technique. I need more inputs to make it a very good system to be traded. Furthermore, i believe 2 heads work better than 1..

My opinion is:
Approx: 9 out of 10 trades you take have been in profit, if or when it goes below 5/10, then you can find what has changed and 'improve' till then it doesn't matter why it works, TAKE ALL THE PIPS YOU CAN GET!

Yes it's make sense. Thank you for your advice.

I think you are right to be skeptical. You have ony been trading in a raging structure, and that structure will change soon. I have tried several trading methods which have worked well for a month or two, then start to accumulate losses. I'm not sure exactly how you are trading, since I don't know what you are referring to as "R" - I assume resistance. But which resistance line are you talking about?

The other aspect that you did not mention, and that is vitally important to any successful trader, is Money Management. Even with a system that wins 9 out of 10 trades you can lose money with poor money management. If your average Risk:Reward is 1:1 you can go down to a 50:50 win:loss ratio before it begins to do damage. At a ratio of 1:2, you can go down to a 34:66 win:loss ration before there is trouble.

If it "ain't broke" don't fix it. Keep trading but be mindful of your risk:reward ration and your win:loss ratio. If they start to adversely change, then you can begin to re-examine your trading method.

GREEN pips to you my friend.

Only testing it for a month is too small of timeframe. But your probably learning something..

1. Add a trend filter - before each trade take a quick look at a daily chart with a 50 or 100 EMA. Ignore 'Sell' signals if price is above the daily MA, ignore 'buy' signals if price is below the daily MA. This way all your trades will have longer term momentum behind them.

2. Stick to major USD based pairs. Don't start thinking that if your strategy works here it will work on any pair - it won't.

3. Check the calendar each day for red flag news - don't open trades when important news releases are due.

4. Give yourself a loss limit - if you lose an unusual number of trades in a day/week, despite following your strategy, something is happening off the charts that you aren't aware of. Stop trading for a while.


Good Luck

Great guys. Thank you for your inputs and advice. Im really appreciate it. will do more paper trades and share with you. Thank you again guys