Hi,
I placed this trade on a demo account at the time but as I was learning the trading method I never bothered with anything else. However I've noticed that this signal seems to appear immediately prior or during a ranging market, as in the example. (For chart see attachement)
In the example it shows a trade on USDDKK Daily 30/5/11 starting @ 5.20411. My method is to split 1 std lot into two 0.5 lots. Then take some profit at a predetermined position and let the second lot run.
In this case after the first candle I increased my stop loss to 150 pips. When the price retraced 150 pips the first stop loss kicked in @ 5.17094. The second lot was left to run, hopefully to catch the trade as it turned positive again. But just in case a 5 pip stop loss is placed just above the original price
line, to cover commissions. but as you can see it never recovered until the next day.
My idea is to cover both sides of the price line. Using a similar method. placing two trades one buy and one sell. As the price falls the first stop will kick in gaining a small profit, while the second is placed as before 5 pips from the line. Then as price goes through the line the opposite trade will kick in.
In the example although candles 1,2 & 3 are very small they actually represent 25, 34 & 12 pips, and as the spread is only 5.9 pips then that means three free trades if nothing else.
Is this viable way to trade or am I being too greedy?
I placed this trade on a demo account at the time but as I was learning the trading method I never bothered with anything else. However I've noticed that this signal seems to appear immediately prior or during a ranging market, as in the example. (For chart see attachement)
In the example it shows a trade on USDDKK Daily 30/5/11 starting @ 5.20411. My method is to split 1 std lot into two 0.5 lots. Then take some profit at a predetermined position and let the second lot run.
In this case after the first candle I increased my stop loss to 150 pips. When the price retraced 150 pips the first stop loss kicked in @ 5.17094. The second lot was left to run, hopefully to catch the trade as it turned positive again. But just in case a 5 pip stop loss is placed just above the original price
line, to cover commissions. but as you can see it never recovered until the next day.
My idea is to cover both sides of the price line. Using a similar method. placing two trades one buy and one sell. As the price falls the first stop will kick in gaining a small profit, while the second is placed as before 5 pips from the line. Then as price goes through the line the opposite trade will kick in.
In the example although candles 1,2 & 3 are very small they actually represent 25, 34 & 12 pips, and as the spread is only 5.9 pips then that means three free trades if nothing else.
Is this viable way to trade or am I being too greedy?
