Ahead of Monday, for anyone intending to trial GT&WV trading strategy I have a few pointers and cautions
1) The Stop loss you apply in MPTM must give seed trades enough room to move
AND accommodate any WV trades into the bargain, by allowing these to mitigate against the seed's loss
AND make a profit.
I allow my seeds on a micro account (at all TF's) to lose about 10 USD - On the H1 TF works out to about 100 pips.
2)
Ensure your break even setting is not too close to price else you will have a large number of trades closing at or near 0 after you factor in commission, swaps and spread. You want trades to achieve BE when price has moved on a little from trade entry point to give it (price) room to fluctuate
3) When you look at your Empty4 terminal closed trades a visual check should show that a proportion of your trades are closing at TP by colour green. This proportion is not a hard and fast number but if none of my trades is hitting TP, then I know my expectations as set in MPTM are unrealistic (
too high). (Remember we are ultra realists and we take what is available not what we would like). Again you don't want every trade to hit TP, because then you are setting the profit bar too low and will not easily achieve the income you need. - Test, test, test
4) MPTM also allows you to set a basket TP level. For H1 and H4 I set this to about 15 - 20 USD. For the D1 I set it somewhat higher. It is gratifying when MPTM closes out your basket of trades for your daily income target in one hit
EDIT 22/8/17 - GTWV EA does not have basket processing
5) Try out jump stops with spread brokers whose prices seem to move more due to "fluctuating spreads". I use trailing stops with commission brokers. Which is better is I think, more a personal thing than provable by hard numbers.
6)
Ensure the support resistance zones you draw where you will input your WV (contra) trade are as accurate as you can get them to be. In the early days I did not do this and the whipsaws on USDCAD were not good.
If price has not gone beyond its recent S/R you cannot confidently say it has changed direction.
7)
Most important - Price moves in its own wonderful way over which we have no control - we merely follow. GT&WV can add a large number of trades depending on the lead we get from price. On a small micro account the problem becomes falling margin levels due to numerous open trades. This can lead to margin calls.
Be warned use the lot sizes and trade numbers indicated and even on a 1:100 leverage account your margin level should be above 200% most of the time.
There is one issue I have not addressed of how to allow trades to decay elegantly closing your open positions. I will do so in the days to come as more people trial out the method.
Finally the EA I am proposing will alleviate some of these issues raised her - I will explain how and what to do when it is available, tested and ready to roll out.
Enjoy.
