Letting The Trade Run
Posted: Wed Jul 20, 2011 3:39 pm
An experiment worthwhile trying. Inspired by the PipEasy thread in FF. After all, I am already profitable trading short term, so why not attempt long?
The only difference is that instead of using 4 mini lots like in short term, use only 1 mini lot for long term. Grab daily profit from short term and allow a small portion of it to be reinvested into long term's SL.
MT4 chart used will be DEMO AVAFX, but entry will be done on LIVE AVAFX platform. This is a possible way to guard from brokers pushing fake quotes in your live account to hunt your stops. Another method is to open up the same chart from another broker. But this could also mean getting different results when doing analysis (e.g. microlot based brokers tend to give PA that is more volatile, when compared to mini)
SL will generally be 16 to 17 pips + 3 to 4 pips spread = 20 pip total
My definition of short/long term; others may agree or disagree since the term short/long seems to be subjected to personal preferences and personality.
> Short term = 10 to 20 pip TP, usually closed within 1 hour, 7 to 10 pips tight stops.
> Long term = anything beyond 20 pips TP, set and walk away style. The idea is to enter a trade, then go to sleep or go to work, then come back for the results. Using loose stops of at least 20 pips.
This is a learning thread where my thoughts are input here. The aim here is to learn how to let the trade run correctly. But suggestions are always welcomed.
The only difference is that instead of using 4 mini lots like in short term, use only 1 mini lot for long term. Grab daily profit from short term and allow a small portion of it to be reinvested into long term's SL.
MT4 chart used will be DEMO AVAFX, but entry will be done on LIVE AVAFX platform. This is a possible way to guard from brokers pushing fake quotes in your live account to hunt your stops. Another method is to open up the same chart from another broker. But this could also mean getting different results when doing analysis (e.g. microlot based brokers tend to give PA that is more volatile, when compared to mini)
SL will generally be 16 to 17 pips + 3 to 4 pips spread = 20 pip total
My definition of short/long term; others may agree or disagree since the term short/long seems to be subjected to personal preferences and personality.
> Short term = 10 to 20 pip TP, usually closed within 1 hour, 7 to 10 pips tight stops.
> Long term = anything beyond 20 pips TP, set and walk away style. The idea is to enter a trade, then go to sleep or go to work, then come back for the results. Using loose stops of at least 20 pips.
This is a learning thread where my thoughts are input here. The aim here is to learn how to let the trade run correctly. But suggestions are always welcomed.