In principle, with this technique, a reasonable SL is 100 pips or I should place it necessarily below (above) the last swing low (high) ?
I think a 100 pip stop loss is reasonable and any thing more than that will cost me too much.
So what do we have in predictions for this week? I for one think that NZD canāt take anymore poundingā¦
Very interesting. I trade a similar method on short term time frames using the Eurodollar.
Simple, easy to read and profitable.
Can u explain one of your eurodollar trade with chart ?
Sure. Will post a thread on it and give you the link.
waiting for the same with anxiety
Very good! Sorry for not posting, I have been away over the weekend.
Price has retraced back to about 1.83000, so if you missed entering the buy, now is a good time, and yes, 100 pip SL should be good enough. We want good risk rewardā¦did anybody get 600 pips on the last downtrend? That would make it 1:6, hard to beat that!
NOTE: Robopip is testing this idea as part of this system winning the contest using the MA crossover idea in the first post, so keep watching the blog to see what the results will beā¦Iām as curious as anybody, myself!
I went ahead and entered - have based on pipcompounderās recommendation and half on some of the things I was seeing. I was hesitant though because Iām not seeing what heās seeing.
Based on this 4 hr chart, what makes you think itās going to go up?
right after my post I went from -25 to +51, LOL
Iād still like to know what you saw pipcompounder.
The solid bullish candle that opened and closed above the trend line itself can be read as a confirmed signal for going long.
It was a pretty sweet move. I donāt know the reason(event) for this move. Anyhow Pipcompounderās Technics are in action.
Iām betting it was headed that direction eventually, but the RBA statement helped give it a good kick start.
RBA: Minutes of the Monetary Policy Meeting of the Reserve Bank Board @ Forex Factory
I saw that too lol. Hope it blasts through that resistance at LO!
Yeah, but right after that candle it dropped right back under the trend line. So Iām a little confused.
And, I gotta say, even though Iām still up (barely, itās 8 right now), it feels like I just lost 30-50 because I was up 70 at one point, and then even just 25 minutes ago I was up 40ā¦and now as I type, itās down again.
I know this is supposed to be a long haul type trade, but it just feels like a loss even when itās not.
Trading FOREX is a game of probability and you can increase the probability of success by following certain rules. Here we are having some rules from Pipcompounder to increase the possibilities to win. There is no 100% guarantee that you will make money on any given trade or on any declared set ups. You must assume that you will lose some trades that you make. But taking small profits like 50 or 60 pips with 100 pips of stop loss will wipe out your gains in long run. Rules from Pipcompounder is designed to look for a profit more than at least 300 pips with a stop loss of 100 pips. If you are strict with the guidelines, then even a 30% of win rate can make you profitable in the long run.
Here is some maths
10 Trades, 30% Wins
3 Wins at 300 pips each = +900 pips
7 Losses at 100 pips each = -700 pips
Total Net gain of 200 pips
I assume PIPCOMPOUNDERāS rules to hunt GBPNZD is above average and it can expand the win rate above 60%.
Anyhow, taking small profits with this strategy is not advisable.
Just my thoughtsā¦
Yeah, I understand. Iām definitely still learning my style.
I think Iād rather be right more often than make it big when I am right. So, Iād rather make 400 in a month with 80% correctness than make 600 in a month with 30% correctness.
I really am trying to learn and not be swayed by emotions, but since Iāve lost some big pips and havenāt really made big pips (I think my biggest gain has been around 50 or 60, but my biggest loss has been around 130), it gets frustrating and easy to pull the trigger early.
Hi guys!
Another question 
Thereās a moment in which itās appropriate to shift SL to BE point in this technique?
Thanks!
I too wait for an answer for this from Pipcompounder.
Normally I use to move my SL to BE on a trade when it attains an RR of 1:1. But in this, the pair is highly volatile and seems 100 pips is not sufficient. At least 150ā¦
This is a matter of personal preference. You can wait for +100 to +150 pips, or you can leave SL at -100ā¦what you need to be able to do is re-enter if your BE SL is hit with confidence, if it looks like the price just retraced without really heading the other way, like it is nowā¦price is ranging a bit right now.
The solid bullish candle that opened and closed above the trend line itself can be read as a confirmed signal for going long.
Exactly! You have to have the patience once you have entered to let the price hit whatever it hits. The best is if you can set alerts at price levels of SL and +100 or +150 pips, if you want to move SL to BE, and walk away for awhile. If youāre just sitting there watching price after a trendline break like this, youāll torture yourself. Use the trendline EA from medisoft to send alerts, in other words donāt have to allow trading, unless you want to, but you can use it for alerts to help keep yourself from āinterfering.ā