I don't use to move stops intraday, and that is what is needed in order to take couple pips of each move. In addition, many times, very good trades, which eventually run for the 200-300 pips defined targets get stoped out on breakeven after being up 50-60 pips (after I move to b/e, trades are closed without giving second entry signal and continuing the way to target) so not talking about moving stops intraday to protect 20-30 pips which may with greater possibility close the possibly good trades. In my case, one trade running for target is worth 3-5 losing trades, therefore I don't use to risk reachable target for intraday 20-30 pips. If my system was to provide signals more often, I would do that.
But believe me, I am after those "given back pips" for long time now (even before starting posting here) - it is really a shame to give up on those breakeven trades. Statistically, I have over 35% closed at breakeven, and it means those trades were AT LEAST 30 pips in my favor (this is the least after which I move stop to b/e - sometimes position may move as much as 50-80 pips before I move to b/e).
In order to take advantage of those pips and/or combine shorter term trades with the longer term positional-swing trading style of mine, I needed to do some home work, go through my trading...and more - not a little work. Originally my plan was: This has to be an additional intraday system for shorter term trades IN ADDITION to longer term trades. And I mentioned about it many times here on this forum that I am after such intraday system. Once I even had a thread of "testing intraday system", but it didn't work as good as expected.
I was in no hurry for that one, and was checking many things lately. I have came up with something and on history+real time testing it looks quiet good.
Unfortunately (?) I have not came up with intraday system...All in all it is same signal as my usual trades. BUT: for example if I have a long entry on eurusd, I will take 2 positions instead of originally one. One will be for the longer term bigger target, and the second one would be with fixed 30:50 ratio in order to take advantage of those breakeven situations( 30 pip stop and 50 pip target).
Have gone through all my actual history of trades and tested it live since August now. Based on the real time test (for last +3 month - Aug till now), it would give me around additional +11.6%. It matches the expectations of the breakeven trades I have. Statistically I have in avg 14-15 trades a month:
avg 5-6 of those trades are closed at breakeven,
4-5 trades are loosing and
5-6 are winning.
More than half of trades closed at breakeven are going more than 30 pips in my favor and potentially reach the 50 pip target before reversing back. So it would add me in avg 3 winning trades for 50 pip target (50 pips on euro with 1:4 leveraging = 2%), but if original longer term trades were stopped, these shorter were stopped, and if longer term trades went for target, these 50 pip target would be hit as well.
So, if we take this shorter term trading as a separate, it would be:
2-3 breakeven trades
8-9 winning trades,
4-5 loosing trades
Pretty nice result.
On euro, yen and cable it is 30:50 (stop:target), on swissy it is 40:60. It is almost 1.2% risk and 2% reward on each such trade.
Trading only the 4 majors, Stop moved to breakeven after 25 pips move, and second (last time) stop moved to lock 10 pips after 40 pips move.
With such results we should expect a +10% a month (!), but unfortunately reality is not always so sweet. It is always different. On trading in real live market conditions, this system still gave a pretty great results :
AUG: +8%
SEP: -1.2%
OCT: +2.4%
NOV: +2.4% till now.
So I repeat that this in no new intraday system - it is just a shorter version of my original system in order to take advantage of the positions which get stopped out at breakeven after being in positive territory. I am planning to use it in addition to my positions. But I don't wish to get exposed to additional risk, and therefore the plan is:
If I have an entry on 2 currency pairs, I will be entering 2 longer term positions and 2 additional positions with 30:50 r:r. Compared to before, I have been taking up to 3 trades at the same time with avg of 70 pips stop. Now I would be taking 2 longer term trades with avg 70 pips stop and 2 additional trades with fixed 30 pips stop, ie 1.2% risk each - risk with this approach is even lower. The 2 trades together are with lower risk than avg single trade before (70 pip/trade before and 2*30=60 pips risk for 2 shorter term trades).
Anyways, this is something I would like to add as an improvement of my current trading style. We all should evolve - any sector of our life: any industry, science, society... bcos there is no end to becoming better, or at least trying to. I think this is going to be a good addition. I have tested it, and think it is very worthwhile and this is a change after which I was for long time now; but I took my time to find the best possible way to profit from those breakeven trades. I will have to consult with my clients before applying this to managed accounts. Once again, it is not a new system - same trading signals, but tighter stops and targets. This will increase the number of trades, but will give good opportunity to take advantage of those trades that go to positive direction for less than target.
Ok, long post - lots of not needed details. hope anyone but me understands what I am talking about here
Anyways, I hope this answers the dilemma Jim; its just that I am not taking any quick new decision on changing/modifying my trading. It may occur to be VERY expensive ). Its better to look at those pips go from time to time rather than doing something that "seems" to be right. I think enough said. I wanted to keep this test till the end of this month at least before telling about it, but after seeing this question once again (I was asked this one previously as well several times), I decided to give it out.
, here's another reco - for euro: