want some reaction on this trading strategy
Hi Anurag,
It sounds very easy to say "trade with the trend" but in reality when you enter a trade you don't really know if the trend will continue or turn against you immediately. Prediction is impossible, we only use indicators to try and understand the market and then look for probabilities and lower risk situations. When a trend starts you don't know how long it will last. I think that specific targets based on how much money you want as opposed to what kind of trending the pair or CFD is doing is very hard to manage. You can base your trade on how much money you want, but on the kind of strategy you have.
For example, are you looking at a 15 minute chart and trend or a 4 hour chart? What is the recent history of that pair or CFD. CFDs and currency pairs behave differently because they are distinct markets and indirect connections and not direct (like individual stocks and the index CFDs but complex relationships like the USD and US Oil.
Stop losses based on how much you can afford to lose is a problem. Stop losses need to be based on the normal swing in prices in the timeframe you are trading so normal swings don't stop you out quickly.
There are articles in this site that discuss trending strategies and it would be good if you review them. Also check out stop loss strategies. I use 4 hour and Daily charts to understand the DIRECTION of trends and then I use Renko charts to actually initiate trades. The longer time frame gives me a trend orientation. The Renko charts provide the actual trading triggers.
CodeShare and some free trend indicators in Marketplace is a good place to narrow down your trend strategy. Try out some of your ideas on a DEMO account until your DEMO account is making money on a weekly basis. You can start with the minimum lots and scale up when you have a winning style.
This is very general, to be a good trader you need to keep and open mind about what the market is doing and separate that from what you need and want. The market has a way of finding out all your weaknesses and exploiting all your inexperience.
Sorry this was not more helpful..... If you want more specific like some trending indicators I use and how I use them I can send them to you. Also Renko is easy to setup with the right converter if you want to try out those charts.
If you can post a chart with an example of what you are doing, that would also help focus comments on your strategy.
Good luck
Attached: Some charts with my Renko charts using moving averages to detect major trending and insert discipline into my trading.
hello traders,
this my sound very childish,but I still want to discuss my strategy.
as we all know,that forex market is highly unpredictable.
so,what I am trying to do is I am reading the current market sentiments and putting up a trade in that trend,with target of 40-50 pips,so even in worst case scenario I can meet my target.
to make it profitable I put these trades every 2 hours,no stop loss,just reading market sentiments,may be through daily fib levels.
basically using price action,and playing with movements.
y I'm saying my worst case scenario will also meet my target,is coz in almost all the trades this much movement do occurs,and that is something natural.
I suggest you add a volatility filter to make sure the 50 pips are reached. The downpoint of your strategy is it will accumulate opened losing positions which will eventually prevent you to trade and widthraw your money, then you will be stopped out.
Start with reducing risk. A SL is mandatory.
No need to detect trends for 50 pips. LOL. Better check candle patterns for reversals, you will get more entry points.
I suggest you add a volatility filter to make sure the 50 pips are reached. The downpoint of your strategy is it will accumulate opened losing positions which will eventually prevent you to trade and widthraw your money, then you will be stopped out.
Start with reducing risk. A SL is mandatory.
No need to detect trends for 50 pips. LOL. Better check candle patterns for reversals, you will get more entry points.
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hello traders,
this my sound very childish,but I still want to discuss my strategy.
as we all know,that forex market is highly unpredictable.
so,what I am trying to do is I am reading the current market sentiments and putting up a trade in that trend,with target of 40-50 pips,so even in worst case scenario I can meet my target.
to make it profitable I put these trades every 2 hours,no stop loss,just reading market sentiments,may be through daily fib levels.
basically using price action,and playing with movements.
y I'm saying my worst case scenario will also meet my target,is coz in almost all the trades this much movement do occurs,and that is something natural.