So you play off the second bounce
I ran some longer term stats for the EURO/USD (Doing tha deal
- my little blog that has become my trading log a "tlog" if you will)
The range and average is pretty stable across the different time periods
I found a more nimble way to adjust the size of my stop loss to the range of the 5m bars.
I thought to my self 'TRO has us trade hour to hour so why am I considering a days worth of stats?'
I then adjusted to an hours worth of stats and compared the results of the 2 methods and came up with the below formula for hour to hour SL adjustment.
I am just throwing this out there for you to consider for your self...
M5 RANGE COUNT (12)
Range divided by 4 and then multiplied by 10.
Or Range multiplied by 2.5
EURUSD is sitting at 8.23 for a 20.5 pip SL
GBPCHF is sitting at 13.91 for a 34.7 pip SL
GBPUSD is sitting at 10.89 for a 27.2 pip SL
I am going to use the 8.23, 13.91, 10.89, etc as a minimum profit target for the Min. Target Trader's Trick.
EURUSD you wait for price to blow through 8.2 pips profit (it could move to 12, 20, 30, w/e) price backs away from the extreme for a few seconds and you place your order to exit at the extreme.
PS: I don't want it to sound like I don't still consider a days worth of stats. I still want to know what can happen during my trading DAY
What second bounce are you referring to?
I am just trying to get in, get out, and use a stop loss level that makes the probable short term gain worth the risk.
When I use a stop based on the 5 minute range and using the same % risk per trade what I am doing is giving every pair the same volatility.
So when you think about it the EURUSD is now impacting my account the same as the GBPUSD or GBPCHF.
I might as well shift my focus to the pairs that require the least amount of margin...