Hi Trading Gang,
Trading in the Middle took some punches the last couple of weeks, but I am still going forward and in spite of some losses, I'm actually gaining more confidence in the system because even in bad weeks I get some good trades to offset some of the losses. If I had paid more attention to setting up all of charts correctly, I actually would have broken even. There must be a lesson there.
For the last two weeks, I have $ 22.13 in losses. Combined with my previous winnings of $ 122.01, I am now up $ 99.88 for 12 weeks, just one week short of the three months live mark.
EURUSD chart shows the type of price movement that this system will struggle with. Net losses on EURUSD alone were about $12.00, or more than half of my total losses. Every time SS changed color, price would take off in the other direction by 100 pips or more. Lots of false breakouts on quite a few charts, but I had some good winners too, which kept the losses manageable.
The following is my live strategy I will be running through the end of the year:
Min. Distance btwn trades=20 pips (I wasn't careful enough in my chart setups and had this set to zero incorrectly on a few charts, which of course added to my losses instead of adding to my profits
)
Max. # of trades per pair: 3
Sixths: Set to 240 periods (this is a big change from the default of 1680 - see below for how I now use these sixths lines for a SL).
Trading only in the middle=true
Breakeven: 40/5.
TP: 500 Pips /
SL: 165 pips
No Jumping SL - I am reviewing the charts once or twice a day and moving SL manually.
Close on Opposite Signal if superslope agrees=true (I had this set incorrectly the last two weeks or I would have actually broken even during the two week period - would have made a big difference!)
Closing Profitable Trades:
If price breaks the outside sixths line on
profitable trades, I am using the Sixths trading line as my SL. If you look at the AUDUSD chart, I've circled an example of this. Buy trade entered on FB signal around .7988. Price climbs, breaking upper sixths line. The gold line on my chart is the Sixths trading line. Price only comes back to the trading line around .8082, nearly a 100 pip profit, which is pretty good on AUDUSD.
I am trying to automate this within the EA, but so far I've just managed to have the EA know when the outside line gets broken. The SL isn't changing for me, so I think I'm changing the code in the wrong place or just doing it backwards.
If I have time in the next week or so, I'll play with it some more and I'll see if I can get that part automated.
Biggest lesson from the last two weeks: I was very busy with family tasks and work, and didn't take the few extra minutes I would have needed to really make sure every chart was set up correctly. This took what would have been breakeven at worse and turned it into a loss. Not as big a deal on a small investment like this (but still a blow to a profitable system), but it's the type of mistake you can't make if you start trading with more money.
Have a great trading week!
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