Been messing around for about one year and blew some live account, I decided to go back to demo account to change strategy from 1m scalping to higher timeframe intraday trading or probably swing trading. I’ve been forward testing this new strategy for just about two weeks now. So this strategy is a bit premature and clearly I’m by any means not an expert.
Reason to change strategy because I found that 1m-5m scalping is very exhausting and I could not bear the stress in the long run. I trade mainly XAUUSD and I’ve made a quite profit in scalping but made a quite bad loss as well, and it even worse.
So, here’s what I’ve done that I felt I’ve made some progress or have some shed of lights on how to trade on a high timeframe should be. I’m looking for advice or confirmation or any opinions of what others do on their high timeframe trading…
I look for clue on which direction the price will potentially go (breakout from consolidation, support/resistance key levels, etc) by scanning from lower to higher TF (eg. 15m - 30m - 1h - 4h -1d). Set SL and TP with 1:2 RR, sometime 1:3 depends on the key levels.
Monitor the trade for the 1st hour to see if the price moves in my direction or against. I set SL at 1% but if the price is clearly moving against I cut loss at 0.5% and move on.
When the price is move away from my starting point in my direction ( I called this “take off” position) then I will let it go. Casually check position every two hours or so, move SL to secure profit, but leave a reasonable room for price to fluctuate)
I feel more relaxed now, especially when the trade is already “take off” and let the price go whether it will reach my TP or not, as long as I have secure my position at least to break even. Still working on my psychology on the first hour of each my trade though, but I felt much better.
Any comments are highly appreciated.