We’re using 6 pips because Trevor determined by experimenting and back-testing that 6 pips worked best. It has nothing to do with the spread.
The extra 3 pips we add to the buy side is to account for the spread, because most charts are BID charts, meaning they show you the price at which you can SELL. The ASK price, at which you can BUY, is always higher than the bid price, by the amount of the spread.
If you normally have a 4-pip spread on your broker’s platform, then you should add 4 pips to the basic 6-pip buffer, and place your BUY entry order at the HIGH + 10 pips.
You would place your SELL entry order at the LOW - 6 pips, like everyone else.
I’m starting to test the strategy that adjusts the stops and TPs according to the overnight range. The rules are the following:
Entries in the standard manner. A significant support or resistance (typically a century or half-century mark) may make me push these a bit further apart.
Stops are set according to the opposite entry signal minus 2 pips. This is just to prevent overlapping orders just in case if I am prevented from cancelling the second trade in time.
If I can, I’ll adjust the SL to BE when the trade is at about 20 pips on profit. If I cannot, the trade can run with the initial limits.
TP is by default at the same distance as the stop. Again, I may bargain a few of pips if it is near a significant level.
The position size is scaled according to the range.
I may not trade if the setup looks bad (like yesterday), or I’m otherwise prevented from trading.
I’ll keep daily log about the trades, logging also trades that I didn’t take. Yesterday, for example was a positive day, because I didn’t take either of the trades and both directions would have turned to a loss. Here’s a public promise that will also assist me in writing everything down: I’ll publish the results in the end of the month.
I’m in long for today, and the price is roughly at BE now. I wouldn’t be surprised if the priced jumped in a few minutes, as 6GMT is a good time for that action. But that’s just speculation, let’s see what will happen.
I’m not sure when does the trading time starts? At 6 am London or at 5?
And if the last candle makes high then i think i red that enter is only on the opposite side or?
Yes, nice, a proper breakout again today with the move starting at about the right times.
That’s an interesting one because if the period low/high occurs near the end of the period it can also mean there is a strong move happening right at the time you place your orders.
I wish all trades worked like tonight.Has usual the demo account is starting to load up.:rolleyes: The people who are live tonight got nice steady move and got to pick there exit nice!We needed a trade like that to keep us on the straight and narrow.
Thank You very much, Clint! Congratulaton for todays trade. For me it was loss because i used only 10 pips sl. Price hit 6309(my enter) few minutes after 5 am London an then gone down 15 pips and stopped me out. and then strait up:rolleyes: If i had entry ponint at the 6310 - only one pip higher, i would be winer too. This is probobly normal situation if sl is 10 pips.
I’m trying 10/50.
WOW. I stayed up for an extra hour and a half last night, after all, as I was concerned of a non-breakout move triggering that Buy. I adjusted it a couple of times, then just moved my trigger up 5 pips along with the TP then went to bed.
So my long did trigger after all and I got the win, but because I set my breakout trades as OCOs I unfortunately missed out on the Sell move. With both trades set with a 48 SL I just didn’t want to take the chance (sigh).
Last night was alright, my buy was triggered right after midnight and closed for a win, only to have my sell trigger at 4am and get stopped out, so I’m down 10 pips for the night.
Does anyone else besides me trade this strategy with both the Buy and Sell positions as an OCO? I have to say I really like the SL set for the range when the range is 40ish like this; it seems to make the 20 TP very doable with what might be a very low failure rate.
I think it will take a lot more than one day to indicate a pattern-change in the market.
I do. And here’s why I think it’s the right tactic for my trading:
When the market makes a good move in both directions, offering me a two-bagger, then I regret having automatically canceled the second leg.
But, when the first move retraces just enough to trigger and then stop out the second leg, then I’m glad I was out of it.
The stop-out scenario seems to happen about as often as the two-bagger scenario. With the risk:reward ratio of 3:2 that I have been using, one stop-out cancels one-and-a-half TP’s. So, statistically, I think I’m better off sticking with the OCO.
After a day like today, wow GU fell through the floor! Surely there has to be a London break up? Nice pattern forming on the 1h chart, better on the 4h chart, big wick, possibly triggering a break up?
I play a different game to you guys… but wish you all the luck on todays forcast. Placed a long at 1.6158 on 1h chart based on the big candlewick. Well see.
I’d like to know more about how you trade, but I’m happy to report I took a short at 1.61688 before I went out for the evening. I’d charted the downward channel and - even though it eventually broke out of the channel at 16:00 EST - I still got my 40 pip TP!
This pair definitely looks to be tightening into a range again since then and I’m hoping for another good night on the breakout!
i sent you a PM and an email (through babypips) yesterday. i’m really serious.
oh yeah, was also testing this approach yesterday. i’m using oskar’s settings
30tp 50sl, tried clint’s numbers with that;
also noticed what merchantprice noticed (about that new high), so i just entered another pending and applied another 6pips above it. both got hit. luckily.
Placed a long at 1.6158 on 1h chart based on the big candlewick. Well see.