I wanted to try something new that I’ve been considering for some time now, using monthly & weekly charts (SR levels) for direction, daily candles for entries and SL placement, while also paying attention to SD levels on the 4H chart.
The strategy is quite simple:
- When my open P/L reaches $100.00, all trades get closed. **
- When my open P/L reached -$50.00, all trades get closed.**
Once trades are all closed I can get back in using stop orders (not market, unless I’m super confident) so that if price continues in my direction they will be opened automatically. Plus, then my analysis is not wasted.
The reason I’m doing this is because so often we see our P/L hit 5-10% of the account just to fall back down to zero. So, this could be a fun solution to that.
I will likely only have 3-4 trades open at any given time because they will be fairly high risk at 5%, or $200 per trade.
Happy trading!
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First order for Silver was triggered:
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Gold position was picked up:
I don’t see much more happening this week. Here’s how it stands so far:
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Despite a spike in Silver last night that took the account up past $50, woke up to a -$65.00 this morning, so as per the strategy I closed all trades.
Gold didn’t do much, but Silver is still respecting this downtrend:
Currently awaiting some pending orders to get triggered. I’m okay sitting out Monday mornings because direction isn’t always clear until later in the day.
A few positions opened today.
Progress so far:
Currently:
I think I’m going to scrap this strategy for the time being. It definitely has potential but it really isn’t for me, not right now anyways.
Some things I would consider changing if anyone else wanted to give it a try would be to increase draw-down, -$50 can come pretty fast! So, for the position sizes I’m using I would be more comfortable with -$100. That or cut the position sizes in half, risking $100 instead of $200, which is still 2.5% of the account.
You also need to watch it more often. Overnight it can swing a lot, so unless you have a script that will automatically close all positions at a certain profit level then you can easily wake up to -$150, which just throws the whole thing off. Also the fact that I’m working back in the office and can’t monitor things often enough, which is exactly how trading should be. Distractions are good.
I’ll be holding my current positions for a while as they’re doing well for the time being, and are following my long-term analysis nicely.
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