He is right. If you want to go long and price has NOT broken resistance at the close of the candle, then the opening of the next candle must be 30 pips or more away from the resistance to meet the rules to initiate a trade.This gives the trade a chance to at least break even which where the rule come in that says move SL to BE+3 after 30 pips positive.
Same thing for shorts. If price has NOT broken support, it must be 30 pips away from support or more to initiate an entry.
The theory is that if price moves 30 pips the chances are good that it will keep trending that way. This isnt the only system that has that theory. And if it doesnt keep trending,and bounces off the support/resistnace and if you moved your SL to BE +3 then you eliminate all risk on the trade and assuming the trade goes against you, you wont lose any money.
My advice is not to take snapshots like that.
Just look at the whole 2012 on EURUSD and see what is your end result. I didnāt do it yet, but my expectation is that you would have somewhere around 1000 pips gain overall.
As ILZ said, trading this system in ranging markets is where men get separated from the boys :))
I have been trying this system for few weeks now. I personally think that what the āTrend Runner - System Reviewā mentioned about the Risk Tolerance regarding the stop loss is quite true.
I also think that moving SL to BE+3 for every 30pips gain is a bit too restricting. I was stopped out very often with very little gain whereas the losing trade would cost me more. Most probably we can try to widen the SL to 50-70pips to give the price more breathing room. I am not sure whether this is a good idea but I am going to try.
As for the 30pips re-entry rule, I find it a bit too risky and is very uncertain so I donāt take those trades. I would wait for price to close the S/R level in order to take the trade.
SuperTrend is still red on my side. According to the rules, you are supposed to go long only when the crossed above SuperTrend line is blue. Not saying it is a bad move but obviously it does not follow the basic rules of the system.
I did not take that trade for this reason as I havent had time yet to check other examples similar to this one that happened in the past and see how they ended up.
You can adjust you SL to the support/resistance levels -+3. For your trades:
E/U - bring SL down to the resistance +3
G/U - not sure which line is your SL, but it could be either resistance +3 depending on your comfort level. I would probably set it for the higher one because the most recent is not very strong.
U/CA - bring the SL up to the support -3 (Again, you could choose which you are comfortable with)
U/C - SL is good at the full -100 pips because there are no support/resistance levels closer.
Hi, I have read every message in this thread so far, and the only thing I am confused about is what BE +1 or BE +3 means. what does that mean?! I canāt find it on the internet through a google search anywhere, sorry if this is a newbie question, but I havenāt seen this addressed yet.
Missed the long on the USDCAD, would it be a valid entry if it breaks the āold resistanceā drawed on the pic? To enter on the green arrow candle? I know it is now to late, but for future re entries or missed entries.
Thank you VERY much habaddon. I figured it was something simple like this. Maybe they should add this terminology to the school of pipsology. Iām going to start demoing this tonight now!
BE should be your enter price. If you go long, BE+3 is your new stop loss when trade moves in your favour of 30 pips. After that, u should increase your stop loss of 1 pip (BE+1) every 10 pips in your favour. Therefore if trade moves 60 pips in your favour, your stop loss should be enter price (BE) + 3 + 1 + 1 + 1 = BE+6. In a short trade, u should replace + with -.
In this way, after 30 pips in your favour u always save 10% of total gain.
I prefer a Trailing Stop after 30 pips in my favour, but this is another storyā¦[/QUOTE]
Excellent, in depth explanationā¦ and Iām amazed that you did not mention that BE = Break Even
Also took those trades at about the same levels except for USDCAD. Decided to wait for it to close above nearby resistance from May 23. As I write this it looks like those who jumped into the USDCAD earlier are probably in a free trade +3 on that pair, or almost.
Thanks irvinfitness. Really appreciate your comments. I didnāt know about that. I always set 100 pip SL when entering a trade. Your comments really helps.
Veyron I dont think that is a good entry that Resistance you mention is OLD, you have have taken the trade when it broke Current last Resistance wich was at aprox 1.0368, when its late its late, better be patient than sorryā¦
I may be mistaken on which resistance should be 30 pips away then. The reason why I waited for it to clear the old resistance is that it was the latest highest known resistance. I have seen couple examples of old highest resistance (or lowest support) that were confirmed at a later stage. not sure if my reasoning was right or wrong here. maybe someone can confirm?
This system seems very good overall, and very easy to use! Iām trying it out on my small live account, but there are a couple of things which I think could be done a bit betterā¦ I just havenāt figured out quite how, yet
First of all, I think it would be very nice if there were someway to specify the entry a bit betterā¦ A 100 pip SL seems very large to me, especially since you should change your SL to 27 pips quite quicklyā¦ (Hopefully )
And thatās the other thingā¦ I personally think you have to move your SL to BE+3 too quickly. It seems very constrictive to the trade, and especially when you keep in mind that we started out with a 100 pip SL not many pips ago
Iāve just been thinking about those two things. Maybe Iām wrong, which could very well be, since I havenāt spend very long time with this system.
But Iām trying it, and hopefully it will catch me some nice pips!
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