I used the 1m as you suggested… I saw a bounce off a trend line on a 15 min chart… so I deliberately missed it (wasnt expecting a big move), then looked at the one min for a possible re-entry… would never have seen the re-entry on the 5 min/15min
straight trend bounce is just a stupid name I give to a bounce off an established trend line…
Its nothing sophisticated… the one I did just then isnt a good example… I just did it for 1 microlot just to test. the example wasnt clean… let me work it a bit more then I will come back to you.
I am trying to tighten up my strategy using trends, fibs, harmonics and ema’s at the moment… so far the results are looking good… I dont know if it is appropriate to put it into this forum, I may start another, if I do put it here, I think it would be appropriate to get TMB’s permission. But it is not quite ready yet…
I’m also trying out a spreading of risk. this is something you may want to look into.
Lets say you find a harmonic pattern (it can be any strategy, but as we are in this forum, lets say a gartley) on the Euro. Well we know that the eruo and GBP are quite will aligned in terms of movement. the same can be said of EURGPB. Conversely, we know that the Yen and Swissy counter trends the Euro. So my thought is, and I have tried this out a number of times with success, lets spread the risk accross multiple currencies.
This is important! if we find a pattern on the Euro, and we say are going to target 30 pips for arguements sake. how about we target just 10 pips across the Euro, GBP and EURGBP on a long. AND we target just 10 pips on the swissy and Yen on a short. this reduces your risk right down AND increases your profits! so far, I havent seen one flunk out on me…
The good side of this is that you spread your risk, you gain more pips and you are not risking a sinking fund, eg when you make say 20 pips and then get stopped out at say 10 pips or turn your profits into a loss!
Still testing this out thoroughly… what are your thoughts?
For the spread of risk. i thought about your idea as well. But it is complicated. At the end, I believed it was no real benefit this way. Suppose we trade three similar pairs and all successful. You got 90 pips, by have 1 slot each. You have three slots of risk. you can put the three slot in one pair, you got 30 pips, but the profit is the same, and it needs more activity to enter/terminate.
That was just my thought, you may have better idea about this.
And looking forward to hearing your strategy/new thread.
I hear what you are saying, but actually as we are targeting only 10 pips across 5 currencies, instead of a 30 pip movement on one currency. so we have more profits as we have 5 x 10 pips = 50pips compared to 1x30=30pips…
I think targeting 10 pips when you are expecting a 30+pip movement is reducing your risk…
I’m doing it myself, my goal es to make an Expert Advisor that trades Harmonic Patterns. I use a public Zigzag indicator, in addition to my own Fractal Zigzag to detect the swings.
Then by software I measure the retracements and with the basic rules I determine if it is a valid pattern. If it is valid, then I calculate the Risk:Reward, and the size of the pattern, if all is good, with a 1:2 RR and at least 12 pips from C to D, then my EA will place a trade, divided in two parts, one that has a RR of 1:1, and the other RR 1:2 minimum, the first one is like a “protection”, once it is closed with profit, the rest of the trade is a free trade and I only trail the stops 1 or 2 fibo levels below.
Can you provide me with a link to the book, to amazon or an ebook or something like that? Or at least the author of the book?
Thanks
PD: the book I had readed is Trade what you see, with lots of another books about swing trading, scalping, candlestick, stock investment and so on, and also tons of material on the Internet.
Got you! yep, so you’re saying instead of spreading 5 x10 pips across multiple currencies, put 5x10 into one currency.
thats very true, but then you have all your eggs in one basket… if something goes drastically wrong on say the swissy, lets say they decide to dump their currency again, and you have 5 x 10 slots in that one currency, you’re done. But, if you spread that risk, and one goes wrong, you still have four others that can potentially go the right way.
this is just discussion, because the other side of the coin is that if something hits say the euro, well gbp gets pretty effected anyways… but you could have time to pull the other trades if you need to.
yeah, its worked well for me a few times, but we will see how that continues. you are right, its quite challenging to manage
enjoy! I found these harder to read than Trade what you see, but you get different things out of each author. These are more technical, whereas trade what you see is better at explaining the movements. I think you need to understand both perspectives to trade this properly.
Good strategy and one that I have been working with my partners aswell last quarter and this quarter, I typically put half my lots on the euro/jpy and half on the aud/jpy, eur/aud, eur/gbp, or eur/usd.
Intersting choice of pairs… I was looking at EURGBP, GBP/USD and EURGBP for the trending pairs and USD/JPY and USDCHF for the counter trend pairs. but yours are differant… will have a play with these too
You seem to have been doing this longer than this baby was a glint in my eye, so how have you found it? because I have done it around 30-35 times and not flunked yet (not to jynx it!)
and so painfully close too!