Quote:
Originally Posted by NKE
Hi Daedalus - flew too close to the sun!?
Thanks for taking the time to post your thinking about trading on fib retracements on the strong trend
I have read through your posts on page 1 and the subsequent posts
I was going to correct you on the taking profit on half the contracts point, but I see that you have worked this out - the probability on price reaching a short distance (say 20 pips) from a retracement is much higher than reaching say 50 pips. I haven't done any backtests, but logically, I would guess that you should take 75% of your profit at the 20 pip target and leave the rest to run
I was really interested in your short pullback set up. I had not seen this before and I will look at your proposal for TP at -10%. Price will usually test a previous high and either carry on or fail
thanks once again for sharing your systems and set ups
I see you use tradestation for charts, is this because brokers platforms are not good enough. I use Accucharts from FX Sol, which are pretty good
|
Hey NKE! Welcome! Let me know what you think of the short pullback setups. I'm still not using them very much. I focus mainly on deep pullbacks but i've heard from others that they are using the shallows with much success. That being said I have found they work much better on longer timeframes... 60min, 4hr, daily, than on a short time frame, so keep that in mind..
As for taking profits, thats for each individual trader to decide for themselves. I only tried to design this system to get out with the most amount of profit the most amount of times. It didn't make sense to me to try and hold for a huge gain every time because you only got that outcome maybe 1 out of every 6 trades, whereas by getting out for less pips, but more consistently 5 out of 6 times, you were actually more net profitable in the long run.
But i'm open to ideas on improving the system. A good discussion is always welcomed!
As for Tradestation, they are, as far as i'm concerned, the ultimate charting package. They are a bit pricey, but I feel they are worth it. I use them as my Future broker as well so if I get my charts for free assuming I make a set # of trades every month (Otherwise its 100.00/month). I use tick charts heavily and a lot of other providers don't offer them so thats one big reason why I stick with them.
Cheers!