Take 10 pips or hope for breakout?

[jacknapier]

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]

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]

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.

 

[BeginnerJoe]

5-20 pips will not cover you when you hit loosers.

 

[wackypete2]

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

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

 

[wackypete2]

5-20 pips will not cover you when you hit loosers.

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

 

[BeginnerJoe]

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.

 

[trendie]

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:

 

[BeginnerJoe]

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]

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

 

[ffsear]

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]

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.

 

[Shakone]

I have a strategy that I can get about 5-20 pips or so pretty easy.

To the OP, you made the above statement. What does this mean?

 

[BeginnerJoe]

take it or leave it.

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.

 

[Splitlink]

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.

 

[BeginnerJoe]

Someone's statement is not going to help me in any form.

I wasn't looking for help. Although I attempt to help the newbs by damping things down by keeping a lid on the claimants.

 

[ffsear]

Thats nice!.. it does make you look like you have a bit of a chip on your shoulder though! :S

 

[bbmac]

If you can - back test a good sample of the trades you have taken (say a 100 sample for eg) and see what the strike rate (emplying your usual trade management rules) was of a risk reward of 1;1, 1:1.5, and 1:2 for eg...then woork out the strike arte and expectancy/trade from those stats and decide which one may be better for you. Do the same exercise on another separate 100 trade sample and compare results .

Was this question prompted by the Gbpusd reaction to that 6-3 MPC vote in the minutes released this morning and strong downside sell off of £ ?

G/L

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.

 

[bbmac]

I have a strat that makes 10 pips on 75% of the entries, but it loses 100 pips on the other 25% - can you make me rich ?

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.

 

[BeginnerJoe]

I have a strat that makes 10 pips on 75% of the entries, but it loses 100 pips on the other 25% - can you make me rich ?

I may be able to. But I will have to see the characteristics of the strat. Call out 10 trades will suffice.