you can do it this way. For example you can move your Stop Loss to entry price if you are 20 pips in profit. Then if it reverses you'll lose nothing.
But I don't trade it like this, I let the trade be until it hits either profit or stop loss.
I haven't tested this additional rule, so I don't know if by adding it would make it more profitable or not.
I'll try to test it with an EA and if I'll find something interesting I'll send an update to all customers.
Hi , If you could test this out with your EA as well, as I back tested this theory over 83 trading days manualy.
Take this week, Monday a buy occured, once at 20 pips profit move stop to 20 pip sl, trade took 40 pips profit.
Tuesday a sell occured, once at 20 pips move stop to 20 pip sl, trade took 40 pip profit.
Wednesday a sell occured, once at 20 pips profit move stop to 20 pip sl, trade then took out at a 20 pip loss, but would have hit 40 pips.
Thursday a buy occured, once at 20 pips prfoit moved stop to 20 pip sl, trade came back and took out a 20 pip loss but would have hit a 40 pip loss.
Today, trade triggered a sell, once got to 20 pips profit moved stop to 20 pip sl, we got within a few pips of taking profit, and price turns back up. Right now at 10pips profit. So even if we get stopped out at -20pips today am still up by 20 pips instead of a loss.
Over the 83 trades I back tested manually, I found these results, 42 winning trades and 12 losing trades, if used the move sl to 20 pips once at 20 pips profit rule, 1 trade out of the 42 winning trades hit a 20 pip sl, and 9 trades also hit the 20 sl with other 3 still hitting the 40 pip sl.
Result was 41 winning =1640 pips profit
1 winning trade turned into a losing of -20 pips, so = -60 pip loss
3 still stopped out at 40 pips = -120 pip loss
9 only hit a 20 pip sl = -180 pip loss
Total = 1280 pips profit instead of 1200 pips profit. I know it's only 80 pips more, but I wonder how much that would be over a year term? But I am unable and don't know how to test!
ps great system!