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Patience can create profits

 
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Old_Dog

Patience can create profits

Hello All,

I think the observation I can add is how my strategy has changed.  At first i was trading tenatively with very small ranges.  10 pips profit and 5 pips stop loss.  I became very frstrated with this but found that if I widend the range I was able to weather some of the ups and downs giving a better chance for profit,  The down side is that sometimes the market goes 'out of control' and you can lose big.  I am refiniing this strategy as time continues.  I hope this helps new traders be less frustrated as they gain market ex[erience.

Mon, 02/11/2019 - 11:11pm
 
3Gimperial

I use big SL that is the main problem at how the market get s you is with you re SL so yes i think that we must give alot of space to our trades i m a trend follower on H4 D1 and i use only clean charts no indicators!

 
Christine French

I'm sorry but I'm in a goofy mood right now. So, we should be space traders and use trend indicators and only follow the SL? Sorry dude. Just feeling goofy. Hope all is well and happy trading! xoxoxo So when you read this and ask, WTF? you're not alone!

 
TraderHewitt

I go the opposite way, and try to make my stops as small as possible by trying to enter as close to where I am wrong as possible, the smaller the stop the lower your risk, in the sense that you have more room to target so higher R and more room to work a scratch if it turns shortly after entry.

@Berlanger, your actual trades though were not small. Remember the goal is to make money (return) not pips, aside from showing off, the amount of pips you make is irrelevant.

Your strategy had a 2R return ex-commissions, which is great, even including commissions it means if you have a strike rate of 40% you make money (well not much, but you don't loose is the point).

You don't make a lot of pips, but because you can trade larger size so in the end make the same as someone trading tiny lots and making lots of pips. For example you make exactly the same return as somebody who made a 100 pips, but risked 50 to do so.

Of course, if you constantly get knocked out, then your stop or entry method is not working,

>>The down side is that sometimes the market goes 'out of control' and you can lose big.

Again though, remember to think in terms of R not pips. If you found you kept getting knocked out, and changed your strategy to have a 10 pip SL and 15 pip TP, and you get stopped out you have not lost "big", you only lost 1R. Its more pips than before, but so what? Your winners are bigger too.

Of course if you adjusted to SL to say 30 for example and kept the target at 10 then you are loosing big (loss is still 1R but winners are now only 0.3R), and in most cases this does not end well, as its hard to keep the very high strike rate required to make this positive (not to mention the phsyc issue as a string of looses takes back a weeks work etc)