hendrix
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Hi guys,
After I reviewed my trades of the past months, I found out, that ~ 90% of my trades hit the 20 pip profit target. When realizing this, I started to trade this way and last three months were very profitable for me. Here is how February looks like so far and how it WOULD look like, if I were trading the "old" way (btw, I trade only EUR/USD and USD/CHF):
1) If I would use a 40 pip pip-by-pip Trailing Stop Loss after entering my trades, I would end up with 20 pips in profit so far.
2) If I would use a 40 pip pip-by-pip TSL's and a 40 pip Profit Target, I would end up with 148 pips in profit so far.
3) If I would use a a 40 pip pip-by-pip TSL's and close my trades "manually", I would en up with 188 pips in profit so far.
4) And because I used 40 pip pip-by-pip TSL's and I had a 20 pip PT, I ended up with 248 pips in profit.
Out of 15 trades, 14 were profitable, which is a 94% success rate. I trade from H4 and H1 TF's only and I get about one or two trading signals each day (but not trading them all).
Anyway, I just wonder, if anyone else is trading like this and if this could be a viable long-term strategy? Trading this way I ended January with 240 pips in profit and December with 310 pips.
I am a bit confused, because almost no-one is promoting this style of trading and yet, it is by FAR the most efficient way for me.
The funny thing is, that when I started trading forex, I traded this way and found success quite fast. But then I started reading books/articles which promoted 1:2, 1:3 and higher risk reward ratios and started to trade that way. This is when my success rate dropped badly and profits were hard to made.
I also realize, that my theoretical break even point is at 67% success rate, the "true" BE probably at 70%, but chasing only 20 pips at a time is 85%+ of the time a successful endeavor. And because I use pip-by-pip Trailing Stop Losses instead of fixed stop losses, my actual RR mostly drops from 2:1 to 1,5:1 or even 1:1.
I would much appreciate your thoughts on this kind of trading. Thanks!
H.
After I reviewed my trades of the past months, I found out, that ~ 90% of my trades hit the 20 pip profit target. When realizing this, I started to trade this way and last three months were very profitable for me. Here is how February looks like so far and how it WOULD look like, if I were trading the "old" way (btw, I trade only EUR/USD and USD/CHF):
1) If I would use a 40 pip pip-by-pip Trailing Stop Loss after entering my trades, I would end up with 20 pips in profit so far.
2) If I would use a 40 pip pip-by-pip TSL's and a 40 pip Profit Target, I would end up with 148 pips in profit so far.
3) If I would use a a 40 pip pip-by-pip TSL's and close my trades "manually", I would en up with 188 pips in profit so far.
4) And because I used 40 pip pip-by-pip TSL's and I had a 20 pip PT, I ended up with 248 pips in profit.
Out of 15 trades, 14 were profitable, which is a 94% success rate. I trade from H4 and H1 TF's only and I get about one or two trading signals each day (but not trading them all).
Anyway, I just wonder, if anyone else is trading like this and if this could be a viable long-term strategy? Trading this way I ended January with 240 pips in profit and December with 310 pips.
I am a bit confused, because almost no-one is promoting this style of trading and yet, it is by FAR the most efficient way for me.
The funny thing is, that when I started trading forex, I traded this way and found success quite fast. But then I started reading books/articles which promoted 1:2, 1:3 and higher risk reward ratios and started to trade that way. This is when my success rate dropped badly and profits were hard to made.
I also realize, that my theoretical break even point is at 67% success rate, the "true" BE probably at 70%, but chasing only 20 pips at a time is 85%+ of the time a successful endeavor. And because I use pip-by-pip Trailing Stop Losses instead of fixed stop losses, my actual RR mostly drops from 2:1 to 1,5:1 or even 1:1.
I would much appreciate your thoughts on this kind of trading. Thanks!
H.
Btw, I don't use any indicators - just trendlines and S&R.