Originally Posted by
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I have been trading for a lengthy time now and my stop loss egy is different from most.
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Everyone on the forum's discuss this egy and this technical and gann and blah blah blah but've forgotten the people that push this market, and it is certainly not the traders on here, it is the bank traders that will trade up to $50 Million in a trade (500 contracts), they are operating on time zone egy, ie that they have to create money for the bank in the working hours they are there. Have you noticed that the market moves at 7am London period and 8.30am New York time?? They arrive in a sit and take a trade. They won't be in it for one hour, so they will take the transaction and then allow it to run so long because it is profitable over the course of another 4-5 hours. These are things which you should be keeping in the back of your mind whenever you are up 35 points within one hour, ie the move hasn't ended.
By all means use the other specifics but by utilizing a zero stop and leaving it for two or three hours and once up 70 - 80 points then take it. Return and do some calculations on the currency you are trading and take 3 -5 months worth of information on what the maximum move above a day was (Amount of points from the low to the top on the afternoon ) and then come up with an average over the interval in question. Was it 60 points? Was it 80 points? Was it 100 points? If it is 80 points and the low was 60 points from where you are now, then you have a good thought that the move will not be an excellent deal farther. This won't work all of the time, but employed consistantly it will generate profits for you personally, and Consistantly having the ability to make profits is what's all about, not tops or bottoms or this tide or that.
Hope this helps.