I spent several months in a practice account trading GBP/USD developing a little system as I went and practicing money management. Went live last week and as of now I have cleared nearly 550 pips in 6 and a half days of trading.
All I am doing is following the trend on the RSI on a 30 minute chart and buying/shorting based on changes in the trend between midnight CST and 8-9 AM CST. When it changes direction and starts moving up, buy, when it starts going down, short. I’m also using daily pivot points, MACD chart, and parabolic stop/reversals as indicators to get a “feel” of if I should follow the RSI or not. So far, I have mostly entered in trades at the beginning of a new candlestick on my 30 minute chart.
Once I am in a trade, I set a 50 point stop…every 50 points the trade heads in my direction, I move the stop 50 points up. I do not set limits, either let it hit the stop or manually exit a trade.
The trailing stop has bit me a couple of times, but has also bailed me out a time or two…I just like having the safety net.
What I’m doing seems to be doing a very nice job of catching the daily trends. As you can imagine, I’m pretty excited about my initial results!
I would like some expert opinions on if I have just had a case of beginners luck and am using indicators that will fail in the long run, or do I have a decent system that, with safe money management and sticking with it, has the potential to be successful over the long haul?
Thanks for reading and thank you for your time.