50 SMA From H

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Permalink Reply by Mister H on October 20, 2008 at 12:11pm

For me personally, money management can differ depending upon what strategy I'm using on a particular trade.

For a swing to position type trade (like this) I would not advocate adjusting your stop every 20 pips.....the reason being that you're trying to capture larger moves, and will most likely get stopped out all the time if you do that. Don't try to be right all the time. You're going to have losing trades. Let things develop and go with the trend as long as it wants to go.

According to this strategy, you exit part of your trade when you get 'up' an amount equal to your risk. Then you let the rest ride until the 50SMA takes you out of the trade. So, for example, if your stop was initially 80 pips away from your entry point, then you'd take a portion of your trade off once you got to be 80 pips in profit. (personally I take 20% of my trade off here, but you could 10%, 25% or 50% or whatever you wanted.......but you need to be consistent from trade to trade). Then after you hit your initial target, move your stop to breakeven on the rest. Once the 50 SMA 'catches up' to your breakeven stop, use the 50SMA to trail your stops lower. Then, once I get a candle to close back above the 50SMA, I exit the trade. (If you entered on a 90 minute candle, wait for 90 minute candle to close. If you used a 240 min, use the 240.) That's it. Simple simple simple. And you really don't need to be around to be looking at the trade all the time. Just check it a few times a day....or use the alarms to alert you. Hope that helps.

ED said:

I have the old habit of moving my stop every 20 pips to lock up profit. Is this strategy proper. or should I stay with my entry order for the long haul to not get stopped out?

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Permalink Reply by SHAY on December 26, 2008 at 5:54am

hello my nema is shay and i am from israel .
i hev q: abaot 50 sma - can i enter when histogram ander the 0 line or i need to white also to the 2 line red and blue
croos(sort)??

2- if the histogram abav the 0 line and 2 line croos over also abav the o line when we enter?(i hop you andestd ).

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Permalink Reply by Mister H on December 26, 2008 at 5:15pm

I'm not sure I completely understand your question, but I'll try to clarify. Once you have a price break of the moving average, go and check the MACD. Assuming you're using standard prameters (settings at 12, 26, 9).....verify that a cross of the MACD lines occured within the past timeframes. If so, that's your confirmation. Enter the trade.

Anytime the MACD lines intersect each other, it sould correspond with a 'zero' reading on the histogram.

Hope this helped.


SHAY said:

hello my nema is shay and i am from israel .
i hev q: abaot 50 sma - can i enter when histogram ander the 0 line or i need to white also to the 2 line red and blue
croos(sort)??

2- if the histogram abav the 0 line and 2 line croos over also abav the o line when we enter?(i hop you andestd ).

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