EUR/JPY 30/30
Today I did something a bit different. Normally, I’d place two stop orders - one stop buy and one stop sell and wait for the breakout to happen. I decided to place two limit orders today. Why? Because the stop buy / stop sell strategy registered 6 wins this month so far had we always placed trades every day. Based on the historical statistics, when this method hits 5 wins in a month, it will begin to incur losing trades. So I thought I’d place buy limit and sell limit orders instead of the regular stop orders. It’s totally based on probabilities.
The buy limit order was placed at 120.95 with a profit target of 121.25 and a stop loss of 120.65.
The sell limit order was placed at 123.64 with a profit target of 123.34 and a stop loss of 123.94.
It turns out that we yet have another break-even day. The sell order incurred a 30-pip loss while the buy order produced a profit.
Simple Forex System Trading » Blog Archive » EUR/JPY 30/30: Spread Is Crucial said:
Nov 26, 08 at 8:07 pm[…] spread. Since the system still has 6 wins this month, I placed a limit buy and a limit sell. You can find out why I change from the normal breakout buy and sell to the limit buy and sell here. (Had we placed a stop sell today at 122.58, that order would have been a loss anyway. It […]