No, I haven’t tommor. I’m not there yet. I’m still in demo with systematic testing on a system that looks like it has real promise, but it seems perfect for pyramiding. Your suggestion inspired me to look further into pyramiding, and I found a very clear article on it, which I’m saving: Pyramid Trading Strategy (Double Your Profit Potential).
The system is based on a “simple strategy” that Forex Tester sends to those who buy FT, and it’s called Trader vs. Coin. They’ve done much testing to discover the very best stop loss for various time frames for EURUSD over a period of 12 years, and have discovered that the best combo is a 55 SL on the daily. Their system involves tossing a coin. If it lands heads, you buy, and hold the trade from candle open to candle close. If it lands tails, you sell. (I’m doing mid-candle to mid-candle because of where I live.) You do not set a profit target, and no matter what, there is absolutely no management; and even if your trade is shooting in your direction like a rocket, you still close the trade and start a new one. They gave some very impressive figures for the per cent one’s account is likely to grow each year.
However, I think I added a tremendous edge. I’m still doing 55 SL for EURUSD on the daily with absolutely no management for the first 24 hours (to validate my testing, which is not with FT because I haven’t learned it well enough yet), but
- instead of tossing a coin, I’m deciding whether to buy or sell based on price action and analysts’ projections; and
- if the trade is moving in my direction after twenty-four hours, I’m letting it run and then managing it to the hilt, moving the stop, adding a profit target, deciding whether to manually close it, etc.
I’m very confident that I’ll be happy with the results. My results thus far? Actually, I’m in the middle of my second test, so it’s much too early to tell; but I’ll tell you two things:
- On my first test, I caught an incredible break: EURUSD was in a very tight range, but with an upward bias, so I bought and caught a breakout - on the last candle of the range! - that landed me 125 pips after a day and a half. (It could have been 140, but I was away from the computer for the last 2 hours before I closed the trade.)
- EURUSD has been in a distinct upward trend at least since 2016; so if I’m in doubt as to which direction I’ll go, I’ll default to buy.
If the system proves successful, I’ll go live, and then test it on other good pairs, but with an SL that is proportional to the ATR of the EURUSD.
Once I gain more stability and confidence in the management aspect of my trading, I’ll try pyramiding, especially since that article makes the method and numbers very clear - and thanks to your boost in my thinking in that direction.
Thank you, tomorr.