Taking half profits at 1/1

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shellsnail
Trader
Posts: 39
Joined: Sun Oct 21, 2012 11:04 pm
Location: United Kingdom

Taking half profits at 1/1

Post by shellsnail »

Hi fellow forum users,

My name is Hanfei, and I just want to share a money management strategy that I use in my daily trading.

This will be suitable for you if you are able to

1) Find an entry edge that offers a very good chance of hitting 1R (R = amount of pips risked, make sure you account for spread and commission).

and having trouble with

2) Deciding how much profit to take and where to shifts stop to.

Basically, I trade on 15min TF and only EUR/USD and I will look for entries from 8AM - 10AM GMT (+2 hr from London Open) and 12PM-2PM GMT (+- 1 hr of NY open). I will only have one trade per session, and if the morning trade is still open, I will not get into a trade of the opposite direction.

Once I get into a trade, I will take half of the profit off at the 1R line, and leave the stops UNTOUCHED and let it run to either my original stop or my profit target. I do not tighten my stops because it is very common for market to come back and test my entry before breaking out.

Once you find a good entry edge, you can easily use this strategy to get consistent and steady profits, but the key is in finding the entry edge to reach that 1R.

I believe anyone can do it if you give yourself six months at the charts to practice. You can only be confident of your entry after backtest and consistent practice.

Profit Taking

For intra-day trading, this is very simple. My profit target will always be the pivot/S/R/Mid-point, that is just before the daily range is fulfilled.

Use the indicator attached it will show you the upper and lower limit for daily range based on past 14 day average. I don't have the MQ4 version so don't ask me for it.

Since you are taking half off at 1R, the position will then be risk-free. Depending on how good your entry is and how large your initial risk is, you can easily get a RR of 5:1 and above for the second position.

I could discuss more about my approach but I think this is the wrong section of the forum so I will stop here for now.
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coleen
Posts: 4
Joined: Thu Feb 14, 2013 11:54 am

Re: Taking half profits at 1/1

Post by coleen »

Rather interesting information. Could you tell where you moved to for more details?
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Ingot54
Trader
Posts: 249
Joined: Sun Feb 03, 2013 12:07 pm
Location: Sunshine Coast, Queensland

Re: Taking half profits at 1/1

Post by Ingot54 »

coleen wrote:Rather interesting information. Could you tell where you moved to for more details?
Try here:

http://www.stevehopwoodforex.com/phpBB3 ... 155#p42155
In some haystacks there is no needle
shayanjameel08
Posts: 9
Joined: Sat Oct 19, 2013 10:30 am

Re: Taking half profits at 1/1

Post by shayanjameel08 »

Hi Guyz, Is it Profitable to Take Partial Profits?
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