TAKING PROFITS IN FOREX PATTERNS | Forex
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For the Live Room Access and memberships click here: http://www.tradeempowered.co.uk/london-live-room For the FX Basics course click here: http://promos.tradeempowered.com/fx-basics-course/ If you are interested in the 12 Week Transformation professional trading course, and want to be added to my personal Skype, email list and have access to added mentorship from myself during the course, Click here: https://t2t.isrefer.com/go/transformation_info/JG/ For the Advanced pattern trader course, Click here: https://t2t.isrefer.com/go/APT_Info/JG/ For the constellation Indicator software for Ninja Trader and MT4, Click here: https://t2t.isrefer.com/go/constellation_info/JG/ Following last weeks video, I thought I would do another video dedicated to answering some of the most common questions that we picked out of the live room last week. This weeks video is on the subject on taking profits on pattern trades. The pros and cons of leaving your profit target where it was conventionally OR rolling with price action. TEST BOTH! That's the beauty of trading. You can test a business plan before you spend any money! Enjoy and don't forget to subscribe to this channel and my own personal channel! See ya next week. Jason
Comments
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Interesting, Good insight, Thanks Jason
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Thanks for the video. Always good to hear small valuable lessons from the pros, always getting good angles to look at own strategy =) and most of the time more things for favorite task of any trader - back testing =)
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Great Video, ok I do it like this
Stop loss 113.0 invertion from A-X
First target ( soft target ) 1:1 Risk:Reward ( I just move stop to break even, I don't make partial closing )
Second target ( complete position) 1:2 Risk:Reward
I've made my backtests with this setup I trade 3 patterns ( Gartley, bat, cypher )
My average win % is 54.98%
From that 54.98% of winning trades, 36.22% ends up at breakeven
From that 54.98% of winning trades 63.78% ends up at target two ( 1:2 Risk:Reward)
My max drawdown% of all the years tested 35.15% (anually 25%)
Return of investment in 4 years tested : 937.59% ( with simple money management )
Return of investment per year (averaged) 79.75% (min 66%, max 93.5%)
I wanted to place my stop and targets like this becoz I'm not planning on leaving my day job anytime soon so I can't be infront of the PC much time... all my rules are made so I can trade 30 min per day, and I can watch my orders 3 times a day ( 10 mins every time ) so I trade H4 only and I only take the patterns that complete within the 4AM candle and the 8AM candle ( I use expiration time so at 12:00 all my pending orders would be closed automatically everyday if the market doesn't get there in that time period ) if the pattern gets filled in other hours I don't take the trade ( I have several rules, some of them may sound a little weird, but it helps me to be consistant ) the problem with using 38.2 fib and 61.8 for targets is that you need to constantly be aware of the markets and be able to make changes in your orders when needed and I just can't... but hey I feel really confortable trading like this... 55% of probabilities of winning a trade is not that bad coz I'm shooting for a 1:2 Risk:Reward so if I lose 4 trades I'm not worried coz I know that I only need to win 2 in order to get back on track. -
Thanks Jason for your video. One point I would like to add to the benefit of rolling the first target to the 38.2 is that historically the 38.2 Fib level is known of being a turning point for trend continuation i.e we see often time that the outside return is likely to stop around the 38.2 Fib level before continuing its original trend move. So worth to roll the target to the 38.2 ;) (Hicham : former pro trader course)
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Jason was a special ops man, respect to the man!
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I always roll my fibs ;)... I think i heard it from Jason Stapleton a long time ago and it made logical sense. Thanks for another great video jase. Keep them coming :)
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Back testing is one of the most boring part of trading
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Dear Jason, I just want to ask something. What do you do if you have an open position which has not hit the target yet on Fridays, I mean market close?
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Jason. Like you I am happier being right more then I'm wrong. The question I have is, if I do roll my profit targets with price action; should I also move my stop loss to comply with my R/R rules i.e 1:1 min?
Thanks for another great video. -
Hey nice video Jason. What for the trade empowered team has been the most successful time frame for the 2618 strategy?
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good discussion on a topic that should not be overlooked. another point one might consider is that an advantage on leaving the initial targets as they were is it requires less on-screen time than keeping adjusting the targets according to fibs.
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I am liking this series
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Nice content again Jason, let me contribute a little. According to my bat pattern test results (1200 trades at 8 pairs 15 minutes charts) moving fib with the price action does not make a dramatic difference. You only win 4-5 % more but in terms of profit it kinda levels itself. Moving target reduces your profit for the high win rate pairs (such as eurjpy according to my tests) and it increases your profit for the pairs which has slightly lower win rate (such as gold). When I put it all together and calculate total income I think it is not worth to worry about whether to move or not.
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Thanks for sharing,this is one aspect of advanced pattern trading I never even considered and can see how this can transform my approach to these set ups. Have a good un