I am very interested in long term trading, but after many hours of back trading several currency pairs discovered that many pairs lose more often then they win.
This means that each trade must represent small % of portfolio in order to prevent draw down.
But if you bet only 2% of account with 200 pip stop, useing weekly charts, (and say 3 hr chart to help signal entrance) then your leverage is 1:1, if you risk 1% then leverage is .5:1!
Is 200 pip stop too high? Too low? Please, those who make money consistenly on long term trading, let the rest of us know:
What timeframes do you use?
What system for signaling entry/exit
Right now I am useing the basic system described in the school.
5 and 10 EMA crossover, with verification of RSI over or above 50 and stochastic moving in same direction but not signaling overshold or overbought with level below 20 or above 80 respectivly.
If you have succeeded in the long term with sustainable long term system please tell us how you do it.