A rather inactive week this week as I didn't find much time to look at the charts. I missed two good moves with the NZDUSD this week being the bounce off the prior weekly resistance, then the bounce some 20 hours later off the prior weekly support. I made 3 trades this week, all of them took a 20 pip loss, so I'm down 60 pips this week. On the plus side, I do seem to be getting emotion out of my trading which can only be good.
Trade 1) I bought off daily support. The price only just nicked my 20 pip stop taking me out for a loss. It then proceeded to the target and 105 pips beyond to hit the weekly resistance.
Trade 2) Similar to trade 1, this time the stop was taken out by 5 odd pips, with the price then proceeding in the direction of the trade for 70 odd pips. Loss of 20 pips
Trade 3) Bought again off daily support but was right at the top of a retrace from the previous move so well and truely caught out there! Loss of 20 pips.
This ends my 4 weeks of consistancy trading.... well no actually, I still am aiming for consistancy, I am merely going to try a 2:1 R/Rratio as well.
On Thursday February 23rd, 2012 at 05:00PM by Brad - Like - 0 People
Seems like that was a great exercise for consistency. 2 to 1 is a good idea. I would also suggest that your 20 pip static stop loss could be adjusted to some other way of getting your stop loss. That 20 pip static stop loss is probably going to get you taken out of trades way to often for the system to be successful over a period of time. Just my thoughts. I just feel like one of the biggest issues with trading systems is trying to keep the stop loss too tight. Forex is a volatile game, and setting blind stop losses at even numbers is a sure way to get your stop loss taken out time and time again, and get the infamous, death by a thousand stop losses. I read that somewhere and thought it was funny.
On Saturday February 25th, 2012 at 10:30AM by beebolbod - Like - 0 People
20 pip SL is a bad idea. It must be relevant to each trade. SL should be placed behind significant levels, i.e. round numbers, pivot points, Fibs, previous bar low/high. Very often moves will retest levels and gain momentum there. If your stop is behind the level - happy days. I NEVER check RR. I want to know that whatever i pick will win. if its 1:1 then so be it. Generally a well planned trade will offer more than 1:3 anyway which is prolly why i never check. That said i doubt any of mine have ever been neg RR. Now THAT would be silly.
On Saturday February 25th, 2012 at 10:36AM by beebolbod - Like - 0 People
Trade 1 was a good trade actually. You were a little unlucky here m8. The others were buying into highs. Hope you can carry on trading next week and good luck!
On Sunday February 26th, 2012 at 12:37AM by RazorX - Like - 0 People
Hi Brad and beebolbod
This is not a system or method, just an exercise to make me consistant. I guess the theory is that if I can be consistant with a trading plan I know is going to fail, I can be consistant with one I know can succeed. However I have been sticking to this for over 6 weeks now, so changing my stop loss to a more dynamic one won't hurt. I'll take that into account for next week.
Thanks for the input guys - appreciated as always.
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