Every trade I move my SL right at the beginning a few pips closer to entry. A few means 2, 3, max 4. It depends how wide is the channel. UJ has narrow channels, so when the channel is less than 30, I would move it just 1 pip. If it is 30-50, I will move it 2-3 pips, if it is more than 50 pips wide, I will go 5 pips. Why? I have experienced that if the price goes as close as 3-5 pips to SL, it will most probably hit the SL sometime. On GU, normal channel is around 70 pips wide. So adjust accordingly. I know, what is 3-5 pips??:) But if you manage to lower your losses at least a little bit, in the long run you will make more! Then when price moves my direction (but I watch for moves to at least 50% of the distance to TP), I will move my SL a little further - not to break even yet! Sometimes it happens that it turns back, goes under your entry and then turns again and hits the TP. This is not exact thing, but experience will make you a pro. Here is an example...
So this is the basic thing I do every time. Then I watch for important supports and resistances (of course if I can and if I am not away from my PC) when trying to lower risk or make higher profit (or at least some profit). Here is an example from today on UJ...
Also when there is no resistance in sight I usually move my TP a few pips further (again 2-4 pips is OK). But this usally works best if there are some news and they are in direction of the trade...
So that is it! If I find something else that works, I will share it...:)
Thanks Tomas, very helpful. Keep on going !
ReplyDeleteHi Michael,
ReplyDeletethanks for writing and coming here! I hope you do well too!
Hello,
ReplyDeleteI was just wondering with the stop loss that you set do you set it more than the 1 pip described in the mannual to reduce the false breakouts? Also do you trade the GU and UJ everyday?
Cheers,
Lee
Sorry for doubling up but i did post this somewhere else on your site
Hi Lee,
ReplyDeleteglad to see you here. When the TP for long is 1.5570 for example and my spread on GU is 2 pips, I put 1.5572 as my TP. For buy stop, if the upper band is 1.5500, I put 1.5502. And for SL, the lower band is 1.5430, I just put 1.5430. I lower my risk with this and I don't think it has ever happened so far that the price would go this far and then had turned and hit the TP. I hope it is clear...
Take care
Lee,
ReplyDeleteforgot to answer your other question, sorry. Yes, I trade both pairs every day... I usually skip trading on 1st Friday every month due to Non Farm Payrolls.
Dear Slurpee,
ReplyDeleteUnfortunately I need still to say the system is bad. Not just your DD was high, but the official Excel database shows 75% DD for 2008 (or 2009) August (with 5% risk).
I still say, that it is abnormal.
I tried the system in May, June and July 2010 and the performance was always worse then the official performance issued in the EXCEL table by the author. It is caused because of the spread, because you (as you are not a robot) can sit at the computer not at 10 always, but sometimes at 10:15 or later and you loose some pips due of that, and you can loose some pips because of your broker etc. (For example the broker closes 1 pip higher or lower the trade as should be closed or at the broker you use the price did not hit the TP but at a different broke hit).
Because of the everyday life is goes just as it oes, this system does not work. And I can prove it based on maths. The official winning ratio is about 40% - 60% of this system (but I consider it is about 45%-55%). So the differnece is so low for winning trades that the small losses that was mentioned above, cover this small profit. I am not just saying, I experienced it for 3 months. Each trade was worse then it was published officially by the author.
I am wondering if Slurpee is working for 1 Minute Daily to get some extra profit for the guys who register from his link.....
Anonymous,
ReplyDeleteI commented your post by the other one you made. Next time, please don't post twice... thanks