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I've been practicing with a demo FX account buying and selling around the previous daily close. However, I'm getting whipsawed to death!

I do get the ethos from this board - take small pips regularly and don't be greedy.

Shown is a chart of today's trading (I use Amibroker software - the previous day's OHLC are plotted, starting from 13:00).



These are 1min candles, and the direction can change very quick - I feel like I'm chasing the price round.

I bought long at A as the price crossed the previous close, but immediately the price whipsawed at B and I lost money selling at C. The same continued to happen. It looks obvious looking at the chart, but these are 1min candles and by the time the candle has fully formed and I've sent my order off, the move can be over and the candles are reversing.

I tried the $Trillion strategy of buying/selling at the close/open with a SL of 7 pips and take profit of 5-10 pips, but this backtested terribly - I got stopped out many times by temporary corrections, and had very low %wins. Larger SL (20-30 pips) give higher %wins, but when a loss does come, all the past 2 weeks hard work is eliminated!

I've done the maths and can see how 10 pips a day could make me a living with my account size:)

But I'm lost... and would really welcome some help.

Thanks,
Alex

Have you ever received an answer to your question below? It seems like rumbledone keeps talking about statistics but I can't see a single statistical distribution or an equity curve posted by him. This was from 2006 what is your experience over the past years in case you used this?

alichambers wrote:I've been practicing with a demo FX account buying and selling around the previous daily close. However, I'm getting whipsawed to death!

I do get the ethos from this board - take small pips regularly and don't be greedy.

Shown is a chart of today's trading (I use Amibroker software - the previous day's OHLC are plotted, starting from 13:00).



These are 1min candles, and the direction can change very quick - I feel like I'm chasing the price round.

I bought long at A as the price crossed the previous close, but immediately the price whipsawed at B and I lost money selling at C. The same continued to happen. It looks obvious looking at the chart, but these are 1min candles and by the time the candle has fully formed and I've sent my order off, the move can be over and the candles are reversing.

I tried the $Trillion strategy of buying/selling at the close/open with a SL of 7 pips and take profit of 5-10 pips, but this backtested terribly - I got stopped out many times by temporary corrections, and had very low %wins. Larger SL (20-30 pips) give higher %wins, but when a loss does come, all the past 2 weeks hard work is eliminated!

I've done the maths and can see how 10 pips a day could make me a living with my account size:)

But I'm lost... and would really welcome some help.

Thanks,
Alex

unlucky,

Looks like you might be on a necro post. However, I'll take a stab at explaining things to you.

This is discretionary trading.

Thus, if you take every trade like a robot - you will lose. After all, you can be right 75% of the time but if you are risking 3 times what you win, you will still lose.

Avery often asks traders (usually after posting a new indicator) whether they SEE it. What he means is do they see how to use a tool to make money?

But the tool is not the trader. After all you wouldn't expect a brand new set of woodshop tools to turn you into a professional carpenter.

The market is all about other trader's emotions. Can you see the frustration, the anger, the fear, the greed on the chart? Is it out of control? Then that is when you strike like a viper in the grass.

You don't need a fancy squiggly line or any indicator at all to SEE this.

Good luck.

Edward