Hi Guys
Do you know any strategies with 3:1 risk/reward ratio for 1 Hr timeframe?
I am currently trying one and would like to compare results.
Thank you
btw, it took me 2,5 years to actually come to this point (made some profit on demo account)
I must be a total waste
personally i do not beleive in risk reward ratios, if i risk a certain amount of money i cant just say to the market 'i want 3 times as much please', the market is not there to give me money, its the last thing it wants to do. which books have you read about trading? i have some good titles i can provide you with.
ok, set up ema high, low, open, and close, bollinger bands, parabolic sar, macd, stochastics slow and rsi. you want to wait for the price to bounce off ema's, set price alerts if you dont like the waiting. when the price touches the ema's check the macd, rsi, stochastics to see if the market is bullish or bear, also just use your eyes to see where prices are going and if ema's are pointing bull or bear. now you check the daily chart to see if its confirming the direction and also check the time frame below hourly to confirm the direction, if not you set some more alerts to wait for the perfect entry, this is all called triple time frame analysis. so your ready for the trade, you will use the hourly charts indicators to place stops and profits , for arguements sake lets say you are buying, the likelyhood of the price moving to bounce off the upper bollinger band is high, so you are not going to be greedy and put your profit target half way between the ema open line and the upper bollinger band. now you need to place your stop, you have a couple of options, you can either put it on ema low, or on the parabolic sar, or inbetween the ema low and parabolic (which is my usual choice), or you can put your stop on the lower bollinger which means risking more which i do not really favor. now the trade is open you will place price alerts, you will put one 20 pips above the open and one 20 pips below the open. your alert starts bleeping, you check the hourly charts, you are so far 20 pips in profit, you look at the daily charts indicators and if there is any sign that the price is reversing you exit the trade maybey with 10 or 15 pips if you are quick about the decision. if the daily and hourly charts are still confirming the direction you stay in the trade and move your alert further up and also put an alert at the point you entered the trade so if this gets triggerd and the daily and hourly chart are showing reversal in price you can get out of the trade alot earlier instead of hanging on till the stop gets triggered. you can even place your alert 10 pips above the open if you like so if the price falls from a high position and the daily and hourly chart are saying get out of the trade, you can still walk away with 10 pips(money doubled). so the idea is to keep your eyes on the trade very frequently, you must do this when intra-day trading, daily charts or higher you have the option to walk away for half a day to live your life. so, use price alerts and keep checking every 10 or 20 pips of price movement the indicators in hourly and daily, if you get cold feet, you can still walk away with profit.
i know there is alot to this stratergy and its quite hard work, but who ever got rich not working hard? not many. i have had some critisism that my stratergy is over complicating things, but at the the end of the day the forex market is complicated, so i dont beleive in simpleton stratergies, you have to be organised and try to be creative with the indicators too. learn a backtesting software programe so you can test new ideas out, i havent learnt how to use the software yet because it does take time and does look complicated. put trust me, my stratergy has made me plenty of cash and have already handed in my notice for the 9-5 cr*p.
and also i forgot to mention, draw a fibonacci from yesterdays high al the way too the low, if your buying and the price has already got to the 64 fibonacci level(i think its 64, cant remeber exactly) then the likely hood of the market testing yesterdays high is very likely. also take a copy of the fibonacci and put it above the high (reflective fibonacci) and if the high has already been broken to see if its not a false break let the price get to the 26 level at least. and also be aware of where the upper bollinger is on the daily because if the high has been broken and the bollinger is not far away then there will soon be a reversal, dont place profit target above it.
if you have any question feel free to ask. and once again 'i know there is so much to this stratergy and some traders might say that its over complicating things, they are just being lazy, beleive me its best to look at absolutely as much as you can to see the bigger picture and you will definately be making the right decision 70-80% of the time, i do'
also tell me if you want to know the title of the books, i read the best books about technical analysis written by the top practitioneers of the market, names like John murphy (who wrote the book technical analysis of the financial markets) alot of traders describe this book as the bible, believe me it is. other top traders such as Steve nison (japanease candle stick charting techniuqes), alexander elder and more.
regards, forex2009.
p.s. im not trying to sell you anything, take care and good luck, and your not a waste, just need to do more research and dont trust anyone, well apart from me.
there are too many players in the market.
