I've seen breakout strategies for daily and weekly. I've never seen one like the one i'm about to present.
- 30 mins a week
- higher reward than risk on EACH trade
- easy to back test
Forex = uncertainty
Thats the bottom line. The reason why there are good traders is because they understand the concept of money management. I'm under the impression that you have lost some money on the forex which is perfectly normal, happens to the best of us. This system "TIME BOX" is 90% mechanical. If you are a beginner than you should leave it like this.
So the question is, how do you know when to use what strategy, or if the strategy is just performing well for the time being. It is difficult to know this and i'll be honest I don't know what time of day its best to scalp, or use a 15 min strategy or many other trading strategies for that matter. What I do know is, is that its all about risk to reward. RISK LESS THAN WHAT YOU CAN MAKE AND ONLY USE 2-3% OF YOU ACCOUNT PER TRADE. Now as starter how do you know where to set the profit? or if its a good idea to set a Stop Loss there or somewhere else.
If you're using a repainting indicator or MACD, or RSI or any of those magical indicators we all found when we started the Forex, it is hard to find where to set the targets. The lines don't tell you where to set anything.
With this system "TIME BOX" there is a simple box. You place the orders, the SL and TP and go to sleep. Your account will not blow over night because you risk less than you can make.
To break even with the 2x TP, you would need to lose 2 times and win once. 3x TP, lose 3 times and win once to break even. The odds are definitely on our side and thats the best thing to have when you are trading. The Holy Grail of Forex is your High School math class because thats where you learn probability.
Try this if you don't believe me. Chose a position, long or short. Flip a coin, if its heads than you won, tails you lost. Everytime you win add 2 points and everytime you lose subtract 1. Do this 10 times and see were you stand. This is the same concept with the box breakout.
Keep in mind that strategy "TIME BOX" also uses logic because we take a position on the break of an important candle of the week. So don't worry we aren't risking our money by flipping coins.
The entry is important. BUT THE EXIT IS MUCH MORE IMPORTANT. This is again the reason why a lot of people fail. Our natural instinct is to ask, "OK, so where do I get in? ". Realize that the exit is more important.