Pips Making Strategy, PLEASE SEE MY LIVE STATEMENT on MT4i and COMMENT.

[garthy]

Hello all.

 

I have been forex trading for about 18 months, however I have always ended up losing ALL the money I made ( I did make money for a while and thought my system was great, for about 8 months), I stuck with it despite the drawdowns, and ended up losing most of it. I have tried also, the best forex mentor services, and have still managed to lose money, the thing is I work full time and end up missing the trades. Also the mentor services and signal pages often give advice that proves to be wrong. The problem was I was often right about the trend but my stop loss was too small, and I ended up with a string of losers.

 

I have been testing a system on and off for over a year, and it always seems to work, however It can go for weeks without making money, but then will more than make up for it in the long run, and usually turns a profit each month.

 

The strategy basically trades with the trend, and has a 300 pip stop loss and 300 pip take profit (I am also testing one strategy with a 300 pip stop loss and splitting the trade, taking half profit at 300 pips and leaving the rest to run to 600 pips.)

 

This stop loss seems to help with days that go against the trend as it is more than most daily ranges, and often comes good in the end. As I said, I've lost all my real money and this is a demo account, however as the take profit is so high, it does NOT rely on spreads, so should work with ANY broker.

 

I have decided to use the strategy and record the results on mt4i, it has been running for 116 days so far, with every month in profit, it will be interesting to see how it goes in future.

 

Please view my results on

 

http://www.mt4i.com/users/garthy

 

Feel free to copy the trades from there, and comment on my risk reward, money management etc, I welcome comments especially from seasoned traders.

 

 

Thanks and good trading!

[Red_Bull]

I like you strategy - With such a hard work you made that strategy great - I know its hard too share - but is there any chance too share it ? Will highly appreciate this and will give you a big big THANKS - :)

[edmun1388]

300 pips stop loss strategy,best throw it away ,me use only 8 - 20 pips stop loss only .

[garthy]

300 pips stop loss strategy,best throw it away ,me use only 8 - 20 pips stop loss only .

 

Hi 300 pips is fine if you use a small lot size, I am using 0.06 lot size which gives $180 stop loss or take profit, I have been unsucessful with small stop losses, this has worked for me!

[garthy]

Hi, I have not documented it yet, as it is in testing stage. It basically uses moving averages to determine trend, and various entry methods, the entry time is not crucial, but I think the money management is, ie the stop loss and take profit values. I have lost about £6000 trading to get to this point so not sure if I would just give strategy completely away. I am willing to help other traders though by offering a free account management service (for 3 months) so I can get some testimonials on the results with a live account. If you are interested in me managing your account for free (with the provision you would give me a testimonial if profitable) let me know.

[Guest indoshare]

what is ur 20pip stop loss strategy? share it plz.

300 pips stop loss strategy,best throw it away ,me use only 8 - 20 pips stop loss only .

[chrisbenjy]

300 pips stop loss strategy,best throw it away ,me use only 8 - 20 pips stop loss only .

 

 

size of sl on its own has nothing to do with the quality of a system, especially if it is out of context. 8-20 pip sl might seem alright on a intraday scalping strategy on a low timeframe, but is suicidal in long term swing trading. However, judging performance based on sl is pointless unless you also analyse the tp. If the sl is twice as big as the tp, then this is unlikely to be very profitable in the long run unless you can predict the market correctly almost all the time. 1:1 is as low as you should aim, and in my opinion is acceptable in all circumstances if the probability of a winning trade is over 50%.

Edited April 30, 2011 by chrisbenjy

[garthy]

I believe you are correct, no one can say dump a system because the stop loss is too high. Everyone has different methods, and for me I cant take a profit scalping, theres too much human emotion involved. If you can make a profit with a 8-20 pip stop loss good luck to you I wish I could, but experience has proved I cant. There so much noise in the market these days, I believe (for me anyway) its best to ignore the noise and go with the trend. Adjust your lot size for the stop loss, and avoid the market noise, I certainly cant trade the noise without losing.

 

I am testing this strategy also with the method of taking 2 trades, and taking profit at 300 on one trade, and 600 on the other, thus improving the money management with the stop loss at 300. I have a signal provider account on zulutrade for this but zulutrade is limited. It could not recognise closing half a trade, so I adjusted to taking 2 trades at the same time, and it cant cope with this either! So although my zulutrade account is doing reasonably well it is only showing half my profits for many trades.

[Diesel 10]

If you don't mind my asking, what method are you using to enter?

 

I see nothing wrong with using a big stop loss as long as the %risk is appropriate for your account size.

[juicyt]

300 pips stop loss strategy,best throw it away ,me use only 8 - 20 pips stop loss only .

 

Should put this in the "I didn't think much about my comment" section. Who cares about the stop loss, what is important is the Risk/reward and win/loss ratio. I could use a 3 pips stop and never win, it doesn't mean it is better than a 300 pips stop winning system.

[garthy]

The entry method is nothing particularly clever, I just determine the trend by checking the direction of a couple of exponential moving averages. I make sure I've always got a position in the market so I can get some pips out of the trend (I don't take any extra trades on nfp if I can help it) usually 4-6 trades maximum. I would not disclose the exact method behind the entry but I don't think it has much to do with the results anyway.

[markjacks]

This looks like a split one. Can someone please confirm this is a good one?