Another cloudy day in North West Ohio!
But a Glorious day for trading!
A day in the currency markets is like a day in Paradise!
Over the weekend I made a few adjustments to my Ninja Charts adding Heiken Ashi candles and changing the existing candles to a line.
I also installed an automatic regression channel and removed the pivots
. I found that the pivots cluttered up the chart too much for my taste and I had used channels before and liked them.
I also adjusted my stop rules.
After taking the 1st target profit, I move the stop up to the bottom (or top
, depending on the trade direction) of the previous Heiken Ashi candle using the 1100 tick chart
(my entry was based on the 512 tick chart).
I continue to do this until being stopped out. I wanted to do it this way because my logic says that if I continue to move the stop, effectively having a target from below (in the case of a long trade), I won't miss the potential big move or at least have a lower probability of doing so.
This is where it got interesting:
I made 3 trades
in my PFG account using this method. All 3 were stopped out after taking the 1st target profit (+3 pips
) and adjusting the stop. This netted +12.8 pips
The 4th trade I made on my thinkorswim
account using Ninja charts but entering it into the thinkorswim active trader.
This trade went as planned but I noticed that I was approaching the top of my channel and the opening of the US market so I moved the 2nd target (a limit order
) down to just above the top of the channel.
I also moved the stop up to the bottom of the previous candle.
I thought to myself, "maybe I shouldn't have moved the target down". Just then the price spiked and triggered the 2nd target.
I was a little irritated thinking "Rookie Mistake" (of course, everything I do could be one big "Rookie Mistake"
5 minutes before the bell the bottom fell out and I found my exit at the top of that move.
Talk about serendipity!
That trade netted +11.9 pips
Mike, if you, or anyone else, has an opinion regarding this plan I am open to hear it!
I find this method to be more comfortable psychologically as it assures that I won't move in and back out of profit turning a winner into a loser.