Take 10 pips or hope for breakout?

jacknapier

Active member
157 2
I have a strategy that I can get about 5-20 pips or so pretty easy. Sometimes I take profit there and it goes on to do 50-100-200+ pips and that annoys me or I'll move stop up to break even when it's ~5 pips profit and it stops out even after hitting 10+ pips or so.

The problem or conundrum I'm having is whether to just take the 5-20 pips when it's there or just move my stop to break even and hope for 100+ pips? I know that you know nothing about the setup I use, it's sort of a combo of a trend following and a band trading strategy.

Just mentioning two trades(I made almost 10 trades so far this week, all break even and one stopped out at a loss), I went long USDCAD and took profit at about 12 pips, but then it went on for another 50. I also went long EURUSD, I could have taken profit at about 10 pips, but then just moved my stop to break even and got stopped out. Just judging from these two trades, it seems move the stop up and hope for more is a better bet, but I just wanted to hear from someone more experienced.
 

Hoggums

Senior member
2,176 878
I have a strategy that I can get about 5-20 pips or so pretty easy. Sometimes I take profit there and it goes on to do 50-100-200+ pips and that annoys me or I'll move stop up to break even when it's ~5 pips profit and it stops out even after hitting 10+ pips or so.

The problem or conundrum I'm having is whether to just take the 5-20 pips when it's there or just move my stop to break even and hope for 100+ pips? I know that you know nothing about the setup I use, it's sort of a combo of a trend following and a band trading strategy.

Just mentioning two trades(I made almost 10 trades so far this week, all break even and one stopped out at a loss), I went long USDCAD and took profit at about 12 pips, but then it went on for another 50. I also went long EURUSD, I could have taken profit at about 10 pips, but then just moved my stop to break even and got stopped out. Just judging from these two trades, it seems move the stop up and hope for more is a better bet, but I just wanted to hear from someone more experienced.

None of us can give you that answer.

you need to properly backtest both methods over a reasonable amount of time, taking profit early and holding on and run it realistically with position sizing you would use and see which method gives you the greatest return.

Also be sure to look at what is the greatest drawdown and see how many losers in a row you get, sometimes the more profitable strategy can give drawdowns or losing runs that are unacceptable so you are better off going for the more conservative strategy.

If you find the holding on strategy gives you more than double the return in backtest then you have your answer!
 

barjon

Legendary member
10,605 1,743
jack

if the expectation from your method means that taking 10 pips (say) will keep your account ticking along healthily, then just keep taking it and don't worry about where price might go after that. It's consistent growth in your account that you're after.
 
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wackypete2

Legendary member
10,229 2,053
jack

if the expectation from your method means that taking 10 pips (say) will keep your account ticking along healthily, then just keep taking it and don't worry about where price might go after that. It's consistent growth in your account that you're after.

Agreed (y)

Also, I don't recommend flipping back and forth between trying for small pips or big pips using the same strategy. Be consistent or you will find yourself constantly banging your head against the wall or kicking the computer. If the small pips is working to your satisfaction then don't deviate.

Peter
 

BeginnerJoe

Senior member
3,329 350
How would you know? He hasn't said what his stop loss usually is but he did say he moves to break even quickly.

You really need to think before you post...or maybe that's worse.

Peter

No need to think. 99.5% loose, the rest couldn't produce a statement.

In fact I can make the OP this offer, if he has a method to make 10 pips on 75% of the entries, I will make him rich.
 
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trendie

Legendary member
6,536 1,129
No need to think. 99.5% loose, the rest couldn't produce a statement.

In fact I can make the OP this offer, if he has a method to make 10 pips on 75% of the entries, I will make him rich.

Isn't he making himself rich already? :cheesy:
 
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BeginnerJoe

Senior member
3,329 350
Isn't he making himself rich already? :cheesy:

No, by the sound of it he's breaking even and making a loss, and that's before the the real losses are hitting. 10 trades and only 1 loss so far can only be a lucky streak. The luck will soon run out and I don't even need to think to say that.
 

ffsear

Senior member
2,158 439
I have a strategy that I can get about 5-20 pips or so pretty easy. Sometimes I take profit there and it goes on to do 50-100-200+ pips and that annoys me or I'll move stop up to break even when it's ~5 pips profit and it stops out even after hitting 10+ pips or so.

The problem or conundrum I'm having is whether to just take the 5-20 pips when it's there or just move my stop to break even and hope for 100+ pips? I know that you know nothing about the setup I use, it's sort of a combo of a trend following and a band trading strategy.

Just mentioning two trades(I made almost 10 trades so far this week, all break even and one stopped out at a loss), I went long USDCAD and took profit at about 12 pips, but then it went on for another 50. I also went long EURUSD, I could have taken profit at about 10 pips, but then just moved my stop to break even and got stopped out. Just judging from these two trades, it seems move the stop up and hope for more is a better bet, but I just wanted to hear from someone more experienced.

I've been hitting a lot of break evens over the last couple of weeks. Markets have been ranging quite a lot.

Don't worry about changing your strategy . Just realize that a lot of us retails traders need some form of trend to make our strategy's work. Try to focus on when the markets may not be moving in the way you need and stand aside.

And don;'t worry about some of the other negative posters here. Sucess will always make some people bitter
 
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ffsear

Senior member
2,158 439
No need to think. 99.5% loose, the rest couldn't produce a statement.

In fact I can make the OP this offer, if he has a method to make 10 pips on 75% of the entries, I will make him rich.


A lot may fail. The ones who sucseed are those that go for it and ignore those that say it can't be done
 

Splitlink

Legendary member
10,850 1,233
No need to think. 99.5% loose, the rest couldn't produce a statement.

In fact I can make the OP this offer, if he has a method to make 10 pips on 75% of the entries, I will make him rich.

Here we go again with this "show a statment" phrase.

No one is going to show statements, BJ. Why on earth should they? The liars, obviously, are not going to and the profitable traders don't have to, or want to.

Everything, here, is at face value--take it or leave it.
 
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Splitlink

Legendary member
10,850 1,233
Can't, if people don't want to show they can play a stroke of tennis, they shouldn't claim to know how to play. If there's no claim, there's no need for statement.

That's true, in theory. People are not like that, though, and sites like this are magnets for all those who like to claim success and, also, those who disbelieve the success that is claimed by others.

The skill is to be able to select any good ideas that come along. Someone's statement is not going to help me in any form.
 
 
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