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Last night’s GBPCHF short & other interesting trading things.

Well GBPCHF had a lovely rally this morning and stopped me out, that’s fine it’s the way it goes, I have however put a new short stop order on down at 1.47333 which is being controlled by SignalTrader, the weekly trend is still bearish and this could be a top…. if this doesn’t happen I’ll give up on it.

The truth about trading

Firstly you should test any system with 1000 trades, testing it on 10 trades and deciding it doesn’t work is a waste of time.

a. The market changes – your trading system may work best in one set of market conditions and worst in another
b. Even the biggest Forex Traders have bad trades, Morgan Stanley stopped out yesterday on EURCAD long, if they had used SignalTrader Trading System the trade would not been taken, my entry order from the robot is still sitting there.
c. If anyone quotes MONEY, I am already suspicious, here’s why.

“See how I made $50000 in 1 hour on the forex”, look the truth is if you have a HUGE account you can make that sort of money with small moves, however it’s irrelevant for the small guy with a small $200 account. If he’s only trading a tiny lot size, your 15 pip move that made you $50k would only make him, well, a psaltry $0.15. How about we make you trade with a $200 account and see how you get on?

d. Persevere with it – adapt your system to the markets if you can, a risk off situation is completely different from a risk on situation.
e. Be honest if you lose trades! It’s ok! EVERY trader loses trades. The main thing is to know that the set up you had was valid at the time.

Robots

I always said I did not like Robots, I don’t but STRobot is ok, a lot of robots use different algorithms to trade, STRobot simply looks for a reversal in the currency pairs, it looks for minimum 55 pip target which it calculates itself, it sets up the stops and does the job. It loses trades, it wins trades, yesterday it won a 66 pip trade and today it lost 38 pips. That’s ok, it has good targets which I can adjust, in fact I’m beginning to go for longer targets than STRobot goes for as it moves the stop up behind the profit. (it is much more sophisticated than a trailing stop by the way).

The only thing I ask is STRobot remembers who’s boss.

http://www.iwanttobeaforextrader.com

Do big institutions use Robots? Ofcourse.

 

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