ok this one
Dale, thanks for the idea, I will test this out instead of SAR, but I have 2 questions for you.
1. How many pairs to trade at once?
AO is an ever present indicator so you can always be in a trade.
There are 16 pairs with spreads of 4 or less, so if you wanted to be in all of them, you would need to use 50 SL and 2:1 leverage.
But obviously no one will open up so many trades, so how many do you reccomend?
Also as to resetting stops, what do you think about +5 SL after pip profit 20-29, +10 from 30-39, +15 40-49, and +50% profit over 50 pips.
Perhaps one could make a rule to check only once/day and reset all stop losses then.
OH! INSPIRATION!
I have it! A system to trade based soley on AO that mixes all the things that have brought me success so far! Money management, technical indicators and luck!
Here it is:
Each Day check to see which pairs have potential for swing trade, meaning that AO shifts from green to red or vica versa.
Set SL of 100 pips, meaning 2:1 leverage with 2% risk.
NO take profits, exit only when oscillator turns other color.
These extreme criteria are needed for this system to capture major moves like GBP/JPY latest drop, which resultyed in 900+ profit if you followed it.
SL needs to be big enough to handle the highs/low that often occur despite the reversing trend, and trailing stop loss will often trigger on such a high/low.
For example in the GBP/JPY drop of last week you would have made 30 pips before being stopped out, missing 870 that followed.
Now this system, I'm sure will have its down times, since draw down at 2% can be high, but I hope that by septemeber 4th, when I go back to school it has at least proven itself profitable enough to warrent continued montoring.
I will use this thread to update you all on how this system is doing.
|