I have uploaded a stop loss applic on this thread… take a look, if if r having 40+ pips profited, its advise u locked in +10 pips to prevent a winning trade to a losing trade.
Ok, so I figured out how to make the trend lines on Oanda, and I have a few questions.
Is a 3 hour chart ok instead of 4? Will this totally screw up the system?
Once a entry is signaled, do you jump in right away based purely on the chart or do you use a smaller time frame to time a better entrance?
If so, do you time the entrance useing other system such as EMA crossover and stochastic, MCAD or RSI?
Finally, Icycloud, I am afraid I don’t understand your reply to my previous query. Are you saying to take 10 pip profits no matter what the expected profit is? Or take 1/4th of the expected profit.
+10 seems to indicate you want to take a bigger profit than projected but your concearn about winning trades becoming losers says otherwise. Please clarify what your position on tp is.
Stop losses, I believe icycloud said he uses 50 pip stops. Please tell us, how does this work.
I myself am enamored with 25 pip losses because they allow 4:1 leverage while risking 1% of my balance, and are a mere 5 pips smaller than the example used in pip school, in which 30 pip losses are used when trading 1 day charts.
I would appreciate hearing from others who trade this or similar systems, or even just 3 or 4 hour charts, what stops do you find most usefull.
Obviously the goal is to find the smallest stop amount that prevents excessive stop outs, and means profits are more often likely to exceed losses. It also means that leverage can increase while still risking 1%, a great method of balanceing the desire to maximize profits while manageing money wizely.
Use the basic system to get the trend line and then profit projection against the latest trend. PP is from the open price of the first candle below trend line. This gives the price at which TP should occur.
But the currency I just sold short, CAD/JPY has its current candle below trend, and it’s price is slightly different than the open.
PP is 75.1 pips, but from the price now its only 64.3 pips.
How I set TP is this. 75% of projected profit from current market price rounded to the nearest 5 place. For example from current price, PP is 64.3 pips, 75% is 48 pips so I said 50, to eak out a slightly larger gain. Still think I am being conservative enough for safe TP instead of loss.
Speaking of which, SL is set at 1/2 of TP, so in this case 25 pip stop loss is set, for leverage of 4:1.
So far I have checked all the major pairs that have signifigant trends, specifically AUD/JPY, AUD/USD, EUR/CHF, and USD/JPY. Unfortunately the largest PP for any of those is only 44.5 pips. Which is why I am exploring other more choppier pairs, which have larger swings and thus seem more likely to offer bigger potential profits.
I am now on my way to seeing if there are other trend breakouts in progress. Will report those once I have made the trades.
Happy hunting.
PS. Please offer any advice if you think I have made a grevious error in SL, TP or charts, I am useign 3 hour since that is all I have.
sorry for hogging the board, I am just so exited by this system.
Right Now I made the trade long GBP/USD, with PP from this point at 54.5 pips. 75% is 41 so I went for TP of 40 pips and SL 20. This means 5:1 leverage, which is the highest I have ever tried! I love living dangerously and still risking only 1% of my balance!
Just had a great idea, I think. Use the trend lines on a strong ongoing trend!
For example right now GBP/JPY is very strong up trend, both 3 hr and 30 min confirm.
So useing the trend lines I calculated how high this trend should go, about 41 pips from this point. So I set TP of 30, SL of 15 and bam!, suddenly I am gunning for a 2% gain while risking 1% and at 8.2:1 leverage no less!
This is wild! Will keep searching for other ongoing trends and see if I can’t go for gold while taking small pip profits off of strong trends!
1)It’s Strongly Recommended to use a 4 hr chart, However if u profitted from 3 hour chart. Go ahead. =)
2)Once a signal is generated, i would Trade the market.
3)I dont use any other indicators.
4)To protect winning positions, when any trade is 40 pips in profit, it is strongly advised to change your stop to 10 pips profit. This technique was derived after seeing several trades in large profits turn bad. The worst thing I believe for a trader to see, is a profitable position turn negative. This way you at least lock in 10 pips profit by moving your stop once in profit 40 pips.
I believe u have read the 1st post on caculating the pips projection.
For trades with less than a 90 pip price projection a stop loss of 50% of the price projection is used. This creates a 2:1 reward/risk ratio. EG TP +90 SL -45
For trades with a price projection of 90 pips and greater a stop loss of 33% of the calculated price projection is used. This creates a 3:1 reward/risk ratio. EG TP +100 SL-33
one of the latest very good trade was AUD/USD
in mt4. As you can sees, the opening cadle we jump in… not even a neagtive pips at all. Hope everyone had a gd catch!
Sorry for the lousy cut and paste effect… my computer knowledge is newbie
>.<
Good day adams…u bought this thread alive… one of the latest trade which i’m still holding is AUD/USD. the stop loss is lock at positive 200 pips for me now… one of the best trade…
Hey, that’s great to hear. I have been doing pretty well myself and I have even been trying this hour on the 1 hour time frame and even the 30 mins. One thing I do change though is the exit area. I still project the t/p by the Mouteki method but I use some discretionary as to candle action to maybe close trades out if they seem not to have enough stamina to make it to the projected t/p. Good to hear your bagging the pips. Have a good one and yea lets keep this thread alive.
I am using “connecting lines” (in post 38 above image) instead of candles to draw my trend lines. Its very clear where to find the swing lows and swing highs which gives you the intended logical price action.
My question is:
Can you use connecting lines instead of candles to find mouteki point1 and point2?
