Thursday 9th October
I’ve not had any trades for the last couple of days. Either they haven’t been showing on both charts, or when they have, there have been more than 15 pips between the two entry points.
So with nothing else to report I’d thought I’d share a couple of other methods that readers have been telling me about.
Tony e-mailed me with this method:
I am following the 1 minute GBP/USD chart with an intensity of 10. The number of bars to qualify is left at three which means that if the trade doesnt qualify in three minutes the PTP disappears. I am using an order to place ticket on IG Index and set the buy ticket at 3.5 points above the TESS entry point and the sell ticket at 0.5 points below the TESS entry point, it appears that the signal on TESS usually equates to the sell price on the IQ feed. I set the limit at 10 and the stop loss at 15.
Last week was the first full week of testing and so it could be a one off.
Week commencing 29th September.
32 trades, 23 winners, 9 losers. 95 pip profit.
Also, Steve had this to say about exit stratergies:
emailed you a few weeks ago regarding the ultimate fx predictor and mentioned i too was tinkering with a few things and was a bit unsure about exit strategies. the 5 bar trailing stop seemed to be giving back too may points on occasions (something which i think you are coming around to) but i have found a simple strategy which for me is ideal because)
a) it is purely mechanical – once a certain point is met that is it, no umming and erring what to do
b) there are swings and roundabouts with all indicators but time and again this seems to bring you out of a turning trade a few pips before a trailing 3%/100 stop is hit. often it can save you as many as 20 or 30 pips in a big move
c) it is already in the software provided
The indicator in question is the stochatic indicator. this hasn’t been mentioned in any of the tutorials but from my own research it is a cracking indicator and one which i am now using in the criteria for entry as well as exit points.
if you aren’t sure what this is, it is basically 2 lines that when they cross over indicate a change in market direction -obviously there is more to it than just that but for exiting purposes it is fairly consistent and is a very good indication as to when to get out.
check it out for yourself, open it up on the toolbar and check out previous trades. during a trade the lines will be apart but as the trade looks like correcting / reversing the lines will cross over – often a few bars before the trailing stop is hit. ok sometimes the market will change again and carry on the trend but we all now know in forex nothing works 100% all of the time. for me though it is often the first and best signal to get out of a trade and more importantly i am 100% confident in my decision to do so.
see what you think. i lke it because it is purely mecanical, no thinking about fibs or sell/ buy/ test bars – they cause too much stress and emotions for me. give me a yes or no signal any day!