I am using a (so far) successful strategy, where I follow trend and only trade EUR/USD when everything look right. I have developed my own indicator for Metatrader, that shows me when I am “allowed” to trade, which is based on trend, volatility and time of day and weekday. I usually trade for 10-15 pips, with a stop-loss of 5-6 pips.
Following this system, I get a very good return and I think to myself “what can go wrong”. I can trade both long and short, so there are really no bad periods either. I say to myself, it cannot be true that I get 10-20% monthly return almost without risk.
So now to my question: How often does it happen some kind of “catastrophic” even with EUR/USD that make the pair move so fast so I will not get out on my stop-loss? I trade with 30:1 leverage, so a sudden 3% shift would basically wipe out my account, if it happens so far that my stop-loss cannot be executed. I use AvaTrade… Can it ever happen such a news/event so that EUR/USD move so much in milliseconds?