Quote:
Originally Posted by kagein
wouldnt it mean that i would have to make more trades instead of letting winners run?
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To hit the same profit overall? Honestly I don't believe so. In fact, my data says the exact opposite for the simple fact that a big winner just doesn't come along that frequently.
Actually what this does is get you in and out quicker which as far as i'm concerned is a good thing. Real world in my live account I only have so much margin buying power to work with. And if i'm in a trade and another setup comes along I have to sit on the sidelines and watch it go by because I can't afford to put on both trades. By getting me in and out more quickly I can take more entries, over more markets, and make more pips. Today alone I was able to take 4 different trades, all which were winners because I was able to be more nimble with my entries and exits. Am I getting every ounce of a move out there? No. But I am getting a nice meaty chunk in the middle and moving on to the next setup.
Here's the other thing. Ease of management. With this new take profit strategy once I get to 38% I put an OCO (Order Cancel Order) in with a limit order for the 23.6% target, and a stop loss at my entry. Then I can completly leave and i'm either stopped out at break even or I take my target profit. Thats the kind of management that I can let ride while I sleep!
Let me know if you have more questions. Like I said, you can do it the old way and you'll be fine! I just feel that this will yield more profits, and my backtesting supports such a conclusion. I wouldn't come in here and tell you something that I don't feel the logic and numbers can't backup. Go find one currency and take the last 5 setups on it. Record the outcomes of the trades using the "hold for gold" management, and then using the "23.6% take profit" management. The results should tell the story and compliment my argument.
Cheers!