Magpie Trader
Monday, August 29, 2005
Position trading Strategy
This is a position trading strategy that has come from the day trading. It's proved itself very profitable in back testing, so I've been forward testing it on a demo account for the last couple of weeks. It's going to take a another month or so at least before I'm comfortable with it with real money.
The advantages with it are that it revolves around limit and stop order entry, plus the stops are at a reasonable 30 pip level, which is small for a position trading strategy.
In the above trade, at 3am GMT Thursday I set a limit buy at 134.98 (around the 85EMa on 1Hr chart) which was triggered at 8PM NZ time (10am GMT) . I never checked till this afternoon how it was going and was happily shown a 88 pip profit. I took profits manually at 135.86 due to the 1HR CCI turn over and TL break.
My dream for the future is to analyse the major pairs only a few hours a day, set limits and stops and only check how it's getting on every hour or so - this is mainly because after sitting for so many hours in front of a screen over the last year, I'm a bit sick of it, plus starting work again it means I'm also doing 7- hours at work with a screen.
My inspiration for this is a guy I've come across who trades this way. I hear from him occasionally but his account is reguarily making 25% a month and his quality of life is excellent. Unfortunatly he's not really forthcoming with his strategy...
// posted by Magpie @ 4:18 pm 
