chrisheath
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Hi Remraf,
Your trailing stop idea.....I used to follow a system that had a very effective trailing stop. The only problem was, 'most' of the time (probably 75%) it was stopped out . It seemed however you tried to get those very obvious extra pips, you had to lose out somewhere else . Either having the extra position lose the full initial stop, or (say with a 20pip trail), you'd often lose those 20 pips, from the first target. I am looking at an approach where the first target has most ,say 80% ,of the full position. The rest is more or less left to do its own thing, with a very loose stop. If it goes back and takes out the initial stop, (or break even), the damage isn't too serious. But trailing with a loose stop it may go on to make 200 + pips - especially if the trade is with the daily trend.
You just have to have a small % ( ie so you can sleep at night!) second position, which of course means you won't generally make the same £ amount as the first position. But if it goes your way.....
I read about this , I think it was the DIBS method, where the perpetrator would take positions based on an hourly inside bar, take 1/2 off at 1 to 1, and let the rest do its own thing. He claimed to be very successful at this. The losses were frequent, but the 'long runner' would make up for this. (I don't think many could trade this way though! Thus my small second position.)
Just my thoughts, I'd like to hear others..
Chris
Your trailing stop idea.....I used to follow a system that had a very effective trailing stop. The only problem was, 'most' of the time (probably 75%) it was stopped out . It seemed however you tried to get those very obvious extra pips, you had to lose out somewhere else . Either having the extra position lose the full initial stop, or (say with a 20pip trail), you'd often lose those 20 pips, from the first target. I am looking at an approach where the first target has most ,say 80% ,of the full position. The rest is more or less left to do its own thing, with a very loose stop. If it goes back and takes out the initial stop, (or break even), the damage isn't too serious. But trailing with a loose stop it may go on to make 200 + pips - especially if the trade is with the daily trend.
You just have to have a small % ( ie so you can sleep at night!) second position, which of course means you won't generally make the same £ amount as the first position. But if it goes your way.....
I read about this , I think it was the DIBS method, where the perpetrator would take positions based on an hourly inside bar, take 1/2 off at 1 to 1, and let the rest do its own thing. He claimed to be very successful at this. The losses were frequent, but the 'long runner' would make up for this. (I don't think many could trade this way though! Thus my small second position.)
Just my thoughts, I'd like to hear others..
Chris
