Hi Guys,
I thought it might be a good idea to seek advice from the babypips community in regards to my efforts to improve my trading strategy. My name is Jan, I’ve been learning to trade for nearly 2 years now and I’ve been trading live for about 2 months now. My system has worked so far but I can see room for improvement which is why I have started this thread.
My strategy is very simple, trading with the trend or range on the 1D and 4HR charts. I look for pin bars and engulfing bars at relevant S/R lines, trading at the break of the pattern. My TP and SL are found by drawing my fibonacci tool over the activating candle, setting my SL just past the 38.2% and my TP at 161.8%. The strategy has been working nicely for a total of about 5 months now on both live and demo. However, there have been times when the price will just keep on running well after I have taken profit; I want to be able to identify when this is going to happen. I have attached a couple of examples of trades I have won over the past couple of weeks. One where I TP at the 161.8% and the price turns back against me and the other where I TP but the price runs up to the 261.8%:
I am not looking to make any big changes to my system, I would just like to see how people tackle this issue. Any help would be much appreciated.
Thanks,
Jan
Nice strategy, the hardest part is implementing a take profit element. Why don’t you take a certain percentage off at certain intervals, move your stop to break even (but not too aggressive) and let a certain percentage eg 20% run wild for crazy trend targets …
Thanks for the replies. I think finding a way to TP without fib would probably be better in the long run but It means a lot of work on the demo account to try and find something which works. I think scaling out might be a good idea; I could take most of my profit at 161.8% and then let the rest run. My only worry would be managing the trade so that I can give it room to run but not so much room that I miss the top of the trend
