It sounds as though your spread is either quite large, or you entered the trade a bit early. However, the thing to keep in mind regarding all of these trades (and any system in general) is that all systems go through periods of draw-down. Judging any system based on a few days, weeks, or months worth of trades is a sure way to lose in the long run.
In addition, real profit is realized in the markets, not through systems, but through a good money management system (which accounts for your lot size and the speed of overall growth in your account).
I feel I was unclear before. I’m in no way blaming you or the system. I chose to make those trades. And I am running the demo account very “hot” on these.
After all it is a Demo, I’m trying to make/break the system for me! It’s good to find out all the information I need to know now.
I am curious by what you mean on getting in too early?
My entry point on the 12:30 trade was:
1.5707 at 12:31pm cst
SL hit at 1568580 at 1:13pm cst.
Is it better to be a little late into the trade? 5 minutes?
Ah, I see the problem. Your stop was a bit too tight…the stop for this trade is .0030 and your stop was set to .0022. This is why the trade is still ongoing from the original entry point, but your trade was stopped out…
I am glad to hear that you are testing the system, as it is wise to test any systems prior to deciding to live trade them. Another important factor with a demo account is to:
a. Trade with a lot size and balance that matches what you will begin your live account with.
b. Use your money management system during testing period in the same way that you would use in a live scenario.
The 12:30pm GBP/USD long trade did not reach TP or S/L, and we are still in the 3pm GBP/USD long trade until 7:30pm CST. The conditions also lined up for the AU open EUR/USD short trade. Here is the setup:
Entry Price: 1.3106
Exit: at the open of the 7:30pm CST bar
S/L: 1.3146
TP: 1.3096
Based on current price movement, I recommend taking this trade with a lesser lot size.
Hopefully you had a great weekend, a chance to catch a breath, and are ready for another action-packed week in FX
The conditions did not line up for the 7am EUR/USD short trade today. Also, be sure to carefully study price action today in order to determine if this bull trend has come to a short term end, or if we are currently experiencing a “fake-out.”