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I have been on a winning streak and now nervous to take new positions

mylin_m19
Jan 29 2013 at 18:40
40 posts
quicksilver that was awesome .. ! Thanks a ton!

mylin_m19
Jan 29 2013 at 18:42
40 posts
any feedback on the strategy guys?

Bisho777
Jan 30 2013 at 06:56
192 posts
what u r doing is a well-known way of trading they call it scaling in and scaling out of a trade, the problem is u r risking 40 out of 80 GBP, it means 50% per trade thats too much!!!!

hmmm about when u should take profit n stop moving, this is a debatable subject... some traders prefer to assign take profit level before entering a trade ( advantage: not to let emotion to interfere, n making the system much more mechanical system)...
some traders manage their take profit n stop loss as the trade progress they call them hybrid traders,

there are many ways to manage ur take profit as ur trade in progress, i guess some of the simplest ways are... depending on the market volatility.. or by using some indicators like:
1. parabolic SAR.
2. 2 moving averages ( fast n slow) n watching for the cross between them...

i tried to give u simple ideas here...

hope thats help!

Martin (elerik)
Jan 30 2013 at 07:12
4 posts
This is very risky strategy.
Scale in/ Scale out strategy in other words.
But may be you have good tactic signal for 'get in' and could be good.
If you are in positive resault. But keep in mind that in negative it is quick hard death of your account, your mind, your calm will be flush, your eyes will stop see reality and you will make more mistakes than you think.
One day trend will stop, and at this moment you have to stay with feet on ground. Than next month you can consistantly loss becouse everathing can stop work. Than next month you can be back in ride. But from begin again. And it is very frustrating.
90 percent chance is that without experiences you cannot stay alive.But there is no other way to get experiencis. So Keep good works.

Gary Sharp myfxpt com
myfxpt
Jan 30 2013 at 07:46
345 posts
elerik posted:
This is very risky strategy.
Scale in/ Scale out strategy in other words.
But may be you have good tactic signal for 'get in' and could be good.
If you are in positive resault. But keep in mind that in negative it is quick hard death of your account, your mind, your calm will be flush, your eyes will stop see reality and you will make more mistakes than you think.
One day trend will stop, and at this moment you have to stay with feet on ground. Than next month you can consistantly loss becouse everathing can stop work. Than next month you can be back in ride. But from begin again. And it is very frustrating.
90 percent chance is that without experiences you cannot stay alive.But there is no other way to get experiencis. So Keep good works.


Nicely put! 😎

mylin_m19
Jan 30 2013 at 10:12
40 posts
Ok Thank you!

So, I will do the following:

1. Risk only 1% of capital
2. If my trade turns profitable i.e. moves x pips to my favor I move my stop-loss x pips. x depends on n days market volatility.
3. If it does not turn profitable within n days i.e. does not moves x pips to my favor - I take profit or stop my losses
4. If the trade is already in profit, I take profit when the parabolic sar changes

What do you think guys? Does this sound reasonable?

Bisho777
Jan 30 2013 at 10:24
192 posts
if i may share my thoughts, but i would like to test the scale in strategy once,i would take some points into consideration, suppose as u said i would risk 1% of capital as max exposure ( in all my trades i wouldnt risk more than 1%), so i entered a trade with 25 pips risk which is already 1% risk of my capital... then the trade went into my favor with 25 pips, i would move me stop loss to break even so that my risk now is zero, right?! but i still think the trend will continue, so if i wanna scale in i will put another trade with 25 pips risk again (1% risk) so both of trades have the same stop loss but for the first the risk is zero n for the second one it will be 25 pips ( 1% risk) n i will proceed with the same strategy... all u wanna confirm in this situation that u have long term trend...

i didnt test that before but i would like really to test it :D

mylin_m19
Jan 30 2013 at 10:29
40 posts
Yes I agree -

1. Risk only 1% of capital
2. If my trade turns profitable i.e. moves x pips to my favor I move my stop-loss x pips. x depends on n days market volatility.
3. If it does not turn profitable within n days i.e. does not moves x pips to my favor - I take profit or stop my losses
4. If the trade is already in profit, I take profit when the parabolic sar changes
5. If the trade is in profit and moves another x pips, then I open a n new trade with stop-loss at x pips.

Bisho777
Jan 30 2013 at 10:32
192 posts
back test that ... try to take ur profit at pre-assigned level once... then try to scale in as ur point 5... compare both results...

mylin_m19
Jan 30 2013 at 10:40
40 posts
but backtest might not really work given that the dynamics of the market might have changed now, and will continue to change in the future..?

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