Save your pips! Make more money!

[adamgalas]

So icycloud intriduced me to the idea of changing your SL to +10 once you are up 40+pips.

This sounds like a great idea, and could be very usefull for system that don't automatically include TP points.

My question to you all is this.

Do you agree that +10 after 40pips is the best or are other combos more useful.

For example, in your experience would a +5 sl after your up 20+ be more useful?

or +10 after your up 25 pips?

or +15 after you up 30 pips?

or +20 after your up 40 pips?

Or perhaps some combo?

Let's say your up 10 pips, maybe you change the SL to break even.

Then once you hit 20 profit you change to +5 sl and anything over 25 you set SL at 1/2 that. A kind of manual trailing stop.

For example. If I have a CAD/JPY short trade going. As of now I am up 10.7 pips. I could set my SL to break even,

and if the profit is 20 the next time I see it I change the SL to +5.

If I come back in 2 hours and I'm up 40 pips, I change the SL to+20 and at the end of the day, being a weekend, the trading actually stops, and I have the luxury of having time to think, I see I'm up 50 pips, so I change the SL to +25.

I would appreciate your advice on this very exciting idea.

Thank you for your advice.

PS please correct me if you think I have set the SL to low.

It would suck to miss out on a big trend because you change the SL to breakeven to early.

[tymen1]

I have tried some of this myself. As i see it, there are no hard and fast answers - each trade is different.

It is well worth locking in profit once you have made some.

One idea i can suggest is that you keep an eye on the one minute charts to see what is happening moment by moment when profit is starting to be made.

I trade 20 min to 1 hour charts and I am always watching them - never leave my computer. The 1/5 minute charts are also loaded and just a mouse click away.

Regards, Tymen Wortel, Perth, Western Australia.