If you risk 2.5% of the account will that not hurt you account badly if your SL is hit as compared to 1%? if I understand well, your TP will also mean you get a good 2.5% growth in one trade but the SL also leaves you minus 2.5%. Is it not counterproductive? But I guess this can play to our advantage if we have fewer SLs and a good win ratio. enlighten me please 
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How are you handling your TP. I know that’s probably separate of this strategy, and something you use across all your trades or adjust when needed.
@carioquy your #1 priority is to survive to trade another day, so only risk what you are comfortable with. I risk more because I’m confident in it. So until you’re confident then keep your risk low.
The win rate for this strategy, when done properly is very high. If you look back at the pairs I traded earlier in the thread you’ll see that they have all shown profit. The thick green & red lines represent my open and SL prices:
AUDNZD - is the one trade that failed. And you’ll notice I did not follow the strategy for this pair. Lesson learned:
I don’t really have a rule for my TP. If price surges in my direction I might get out and re-enter on the pullback. Or if price is at a SR level, same deal.
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True. The charts history show a very promising win rate. Thanks for the clarification and taking your time to explain that. 
So you run with it until some level of profit, or some level of pullback on a profitable run? Thanks!
If anyone’s using this strategy, I thought I would post my thoughts on EURJPY.
The long-term trend for this pair is obviously long, however, with the state of the EUR right now we have seen some nice short runs.
This pair is at a crossroads ATM and can go either direction, so prepare for the following possibilities:
On the weekly chart we have seen 2 bullish candles in the last 3 weeks, so despite the recent downtrend, we can’t ignore the longer term direction:
Zoom in to the daily chart and we’re at the top of this descending channel:
That support around the 133.1 area looks pretty tempting.
I believe that the best move here is to wait for Mondays candle to close, then place a stop order above or below that candle.
Another nice setup possibly in the making with CADCHF
Daily chart, continuation of the recent downtrend. Price has flipped over from resistance to support. Will it hold?
If so, we could see a continuation down to the 0.715 to 0.72 area. Here’s the weekly chart:
Remember to keep your positions small and your SL’s wide. These are long term plays designed to grow your account slow and steady.
Kindly keep us updated on this pair. It is my favorite pair to trade. I have been tracking it and am looking for good entry point for the long term trend
Stop Loss - Go back to your weekly chart and place your SL at ATR x1.5.
Please forgive a dummy question but how is this calculated. Is it divide the ATR by 2 and add result to original ATR?
I like this strategy.
Applying it to my charts this week.
To help some readers, here is how to find the ATR value to apply to your Stop Loss:
Hope this helps someone.
Thank you for this thread MattyMoney
2 notable pairs to watch for this strategy:
NZDCAD - Weekly
NZDCHF - Weekly
Daily
Back posting after 3 years. Welcome back! Thanks for sharing.
Thanks samewise
yeah … still plugging away … 
I loaded the ATR on my chart, but it seems more like a strength indicator. I get a scale of 0.000 to 4.000 on the side and not pip values. Am I loading the correct indicator or is there a setting that I am missing. It is showing ATR 14 on my chart.
Hi Dinehan
The ATR doesn’t give up its secrets easily.
There are a couple of ways that you can get the true reading - so far you seem to have done everything correctly.
Method 1 Get the crosshairs of your mouse to cross EXACTLY at the end of the ATR line on your chart window.
(Crosshairs will appear when you press down the middle wheel on your mouse, or by selecting crosshairs from the top toolbar).
The reading will then appear in the vertical margin on the extreme right margin of that chart window.
Method 2 Go to your top toolbar, and the 4th icon along from the left end, looks like a telescopic sights grey cross-hairs.
Click on that icon, and a menu drops down called “Data Window.”
Then use the scroll bar in that window, and position it at the bottom.
The last item in that menuu is called “ATR(14)” (provided your ATR period is 14).
Then position your mouse arrow in the ATR window as before, and place the tip of the arrow at the end of the ATR line.
The ATR reading will then appear in the left hand data Window alongside the ATR(14) reading right at the bottom.
Might take you a couple of tries to get it right, but basically that’s how to get the reading accurately.
Just a quick note on charting:
The algorithm boys and girls at the big banks have royally destroyed the accuracy of charting indicators, so don’t try to get them super-accurate.
Anyone who is using Support/Resistance, or Fibonacci or Pivot Point levels will already know that these days, price ALWAYS turns before striking these levels. (Unless price is going to blow right through the level and move further).
It’s called “front-running the retail traders.”
Designed to keep retail traders in the market longer than is wise (ie too late to get out with your profit intact), as we seek to wring out the last pips from the trend.
When setting your Take profit (TP) levels always set them 6-to-8 pips (experiment with it) UNDER the indicated level you calculated will be the turning point.
Otherwise you will find that you are still in trades that you wished you had closed.
For people running trading bots, I suggest your profits might improve if you adjust your Stop Loss (SL) and TP settings in those, to apply BEFORE the levels we have been used to in the past.
Algorithmic traders are having a good time of it, but you and I can’t afford the kind of software they are using.
Our next best approach is to beat them at their own sneaky games!
Your chart is set up correctly, Doug.
I set up a weekly chart of the EURJPY and got roughly the same figure - I got 3.856 at time of writing, using a 14-period ATR…
So in looking at each WEEKLY candle, you will get the correct ATR by multiplying by 100.
You can check this is correct, by dropping down to the 4H chart, and you will find that the ATR is around 0.696. Obviously if you measure the range of a few 4H candles, you can see that the ATR is very close to 70.
To me that means that the WEEKLY reading we both got of around 3.85, is only 1% of the actual ATR.
So the weekly range, or ATR, is 3.85 x 100 = 385 pips.
I too was a bit baffled when I saw that figure, but when applied to the GOLD charts (that’s what I usually trade) the figure comes up accurately as $ movement in price, not pips.
So even with Gold, I have to multiply x 100 to get the range in pips.
I checked, and it is the same with Silver too.
For some reason when they constructed this ATR, they didn’t make it with a contunuously calculated figure being displayed in the margins.
I guess it was just too much code writing to achieve that - we get spoiled with computed charts.
I too was expecting to just load up the ATR and automatically see the reading … but no.
I hope that helps.
Thanks for the response. Makes total sense.
I have tried this strategy today for the first time with eurjpy and ended up hitting my tp of 100 pips. So far so good.
Your very brave to trade gold. Do you trade it using this strategy? How has it worked?
I have traded gold on a more short term basis and had some success. But more losses than wins.
I think this long term strategy is the way to go. Definitely not as stressful.
Thanks again for the reply.
Doug
