The following are the answer for ur question.
1) You're saying, that your TP is usually 20-30 pips,
in fact you're trading up to 50 or 90 or 300 pips sometimes.
It's not a TRO scalping Buy Zone system anymore,
it's more resembles me a "London Rush System" with 200-300 TP.
The idea came from TRO BZ theory. Even the system actually give me 100-300 pips but i took 20-30 pips or more. Sometime I move the SL to new high or low to get more pips or i use trail stop. We never know which trade will give us big pips. Thats why taking small is better than nothing. The system offer us a lot so why dont we take this opportunity to take only 20-30 pips or more?
2) Could you explain in more details,
what do you mean by "crossing BZ".
As a matter of fact, BuyZone is surrounded by 2 lines -
top and bottom blue ones.
When the event of "crossing of BZ" is happenning
(according to you):
- when price just touch bottom blue line
- when price come through second (top) blue line
- something else
I use TRO BZ indicator. I just change the input so it show only 1 blue line n 1 red line. Entry starts as the price cross either BZ or SZ;
straddle-width : 20
channel : 0
Look at the chart below. Its a daily movement on 5 min chart;
line is BZ n RED
line is my SL for SELL (+10 pips above BZ) while the CYAN
line is my SL for BUY (-10 pips below SZ). Usually I didnt add both SL lines on my chart. Just to show u the example
This setting is excluding spread. U should add ur spread.
1st Trade : SELL (cross SZ)
2nd Trade : BUY (cross BZ)
3rd Trade : SELL (cross SZ)
4th Trade : BUY (cross BZ)
5th Trade : SELL (cross SZ)
6th Trade : BUY (cross BZ)
7th Trade : SELL (cross SZ)
3) Are you looking at any other indicators/timeframes
to confirm your entry?
Before, I didnt use any indicator except TRO BZ. But I did look at Support / Resistance n refer higher time frame. But Carlos introduced me few indicators which he mentioned in this forum and its worth to watch it especially e-reg, buzzard, Tro multimeter candle color and Tro Period Data.
Carlos is expert on this. He can explain.
U can use any indicators u want as ur filter. Personally, I just watch these indicators but my priority is the BZ. Why??? I'll explain later.
4) Imagine - green candle goes up, goes through BZ up
and then - starts to move down, becoming red candle
(but you're already in the buy trade and - in loss).
What are you doing then:
- exiting the trade
- wait until your SL of -50 pips is touched
- adjust SL
- something else
I only exit my trade when it hit my SL / TP and I only adjust my SL if my trade is in POSITIVE position (to get more pips). Look at the chart above;
The 1st trade is sell but the price moves up for 20+ pips and it should be in loss. BUT it didnt hit my SL yet, too far to go. What happen when u exit early? Same as 2nd trade, buy and moves downward for +20 pips, should be loss but the fact is u just miss a possible 50-70 pips if u close ur trade.
I never quit. Look at the chart below;
After 3rd trade u might think u just wasting ur time. The system didnt work. It give me total loss of -42 pips. Then u stop. See what happened after that. 230 pips. Thats a lot man n u just miss it... In this case if I loss my previous trade, I'll wait for another entry n try to cover my loss. If i cant, I'll wait for the next day. In other words, I will trade if my system is valid sell or buy, loss or profit, I dont care. U never know. Following ur system will make u to be a good trader. Look at my report, 3 months with profit daily. Oh, well i did it longer than that...
Its the same scenario if u r too depending on other indicators or prediction. Let say the price hit bz but ur indicator give u short signal or there is prediction saying that GBPJPY will drop. Which one u choose? For me I'll stick to my BZ. I'm not ignoring other indicators or prediction but its worth to watch it. Just watch it out. It might true or not. Before it happen u never know. As I said, its good to be afraid but dont let it control ur trade. Market always moves...n I dont trade on past or future market.
That what Carlos did as mentioned by one of our friend from Poland here. Carlos trade on opposite direction of what the indicators told and he was right.
5) How do you know, which order to place:
buy or sell at the beginning of the hour
(prior to price will touch either BZ or SZ)
or you're placing both (stradle trade similar to news breakout trading)?
Beginning of the hour i might put pending sell or buy. If one hit, i close the other. But sometime i do it manually. FIRST COME, FIRST SERVE. Btw, I didnt trade on news. But I do trade on NFP, as TRO said...just be quick
The important thing here is ur Money Management. For this BZ system I only trade maximum of 10 trades per day although it is rare. Look at my reports. So, if I loss all the trade it will be maximum of -500 pips. Make sure u have enough on ur account. Manage ur money wisely....
"Never Ending Opportunities"