my question is as regards the trading system in the school of pipsology. My opinion is that the exit strategy in the system only applys to those who are able to watch the charts all day or sit with their computers at least. What do you think?Thanks,in advance for your replys
Day Trading methodologies quite often involve you having to watch the screen for extended periods. But if your charts have alarms that can send you text messages everytime there is a moving average crossover in agreement with the trend then you would really only have to monitor things once you get that alarm.
I think it is a great feature for charting packages to have alarms because it really solves the problem of having to be glued to your screen
There is an inherent ambiguity with both the entry and the exit strategies. The problem is “when.”
The description of backtesting included in the SSIR chapter indicates all activity occurs at the CLOSE of a daily candle. Under this assumption, it is not necessary to watch the charts all day, just a few minutes around the CLOSE time.
The setup description, however, does not refer to time at all leaving the difference between CLOSE and CURRENT time ambiguous.
I would think any system could include a predetermined number of pips. Since this uses a 30 pip stop loss, probably throw in something 2 to 3 times that so someone could put a T/P at 60 or 90 pips, or even 120 (buy three lots and each a different level of TP). Perhaps adding a trailing stop and no TP would be a better strategy if you hope for greater gains.
I was looking at this a bit and thought that applying a MACD and using that to help with enter and exits would be good, but of course on a check it at end of day (if using daily). One potential trade that was I was back looking (testing) would have been about 500 pips over 6 weeks. So with a daily bar chart you probably wouldn’t be closing the trade very soon except if it went badly and stopped out.
I was wondering if anyone had applied this perhaps to a 4 HR or 1 HR timeframe and what adjustments, if any, might be made in the indicators and strategy? But when getting down to the 1 HR or less probably as good or better with James 40 pip a day system and very similiar looking for me when I had the MACD in on the babypips school system.
I’ve tried the method with forexninja when said to buy the usd/jpy. I did it, I gained prfoit, but didn’t get the full profit. To my surprise the highs didn’t reach the max which he was predicting, and this was after a day, actually tonight, it started going down. I think the best method for this would be to exit a couple of points before the predicted measurements.