I find myself overtrading (still looking beyond this simple strat in this example), a common situation for many traders. Why i feel the need to get into, or even look for other trades when i've seen this simple strat yeild fairly consistent (fairly is to week a term!) returns is something i must work on. One nice thing about this strat is i can look for trade setups sometime around 1pm to 2pm Pacific...get into any appropriate trade(s) then i head off for work at 4 - 9pm ish. This can be a benefit as i can not monitor the trades. As long as a catastrophic stop is in place, there is not much to concern oneself over. Just let it run its course.
Last nite i came home after my easy 4-9 pm shift to see the Gbp sell and Jpy buy had closed in profit and the Eur sell and Chf buy were still around break even. When i woke up Wed morning before NY open all trades had finaly closed in profit. I'm not saying that getting into all four was the right thing to do, but i'm experimenting w/this in demo so why not at this point? This is so simple, it is almost embarrasing after everything i've been taught and all the other strategies out there. I know there will be trades that go against us and must be closed out in the negative...though so far each has finaly turned around and closed in profit.
The thing i need to address for myself is i can look at my statement and see +10, +10, +10, +10, .....blah, blah... and it is freaky: Then i go trade on typical TA and discretion (looking for trades because i think i need to be trading!) and see +27,-15,+30,-60,+43,-21...etc... and that is usually during the London Open and time consumeing as i'm Pacific time. So I'll continue to dig into this model that is nearly stress free as far as i can tell.
This is just a ramble, lots for me to think upon. Is this truely a strategy that can make one rich? My first response is, yes. Though it is so simple that the human mind revolts. We like to muck things up by making the simple complicated...i think it makes us feel good? or something!
: ) Thom