Results from today: 4.5.2010: finished at noon.
gbpusd: +39 (very choppy...)
eurjpy: +49 (editing: I made one more short trade: +31pips)
eurusd: +40
total: +159pips
Hey! Good going Lucca.
My only concern is that when we don't get these nice big moves, you will get hammered. Nevertheless, this strategy picks out some good entries, but I think it's best to come up with different trade management rules than the authors recommend, because a bad month could wipe your account.
I am not interested in 70 pip stops. I know conventional wisdom is that it's ok because you just size your position accordingly, but I think that's bull! Smaller position = less profit. It actually makes a HUGE difference to the profitability of a strategy.
I would much rather make 20 pips with a bigger position than aim for 100 pips with a smaller position. The probabilities of correctly picking a 20 pip move are higher than correctly picking a 100 pip move.
And there are ways of getting into these trades WITHOUT having such a huge initial stop.
I am taking small targets with small stops. My average TP1 is 20 pips, average TP2 is 40 pips. Average SL is 20 pips. I open 2 positions. When I hit TP1, I close 1 position and move SL on remaining position to BE.
I didn't trade on Monday due to bank holiday in UK, and I stopped trading yesterday after I got 28 pips.
Like yesterday, I was TOTALLY happy taking 28 pips and then watching everything freefall for 100pips+. It REALLY doesn't bother me! I got what I wanted and then got out!
Tally for Tues/Wed this week:
+1
+1
+25
+20
+1
+23
= 71
And I have a "risk free" trade still open on EURJPY which is currently at +16.
I only took 2 trades so far today, and when this one closes [whether at target or be], I will be done for the day.
Get in and get out! Don't be greedy!
Sorry if this seems like a lecture, but just trying to pass on some of my experiences of the last 18 months of trading!
)
