- 15 Mins Special Bars
- Momentum Analysis – Part 1
- Momentum Analysis – Part 2
- Momentum Analysis – Part 3
- Quick Recap
T he Dashboard contains everything you need to enter and exit trades. When you scroll down you will see a table which displays Profit Target and Stop Loss for each pair. That’s all you need.
How we calculate Profit Targets is simple.
We calculate Weekly ATR for each pair for the last 26 weeks. We then bundle them into ranges.
Stop Loss is based on 10% of the higher end of the range. For profit targets we use 15% and 20% of the same.
So in the example above EURUSD ATR is between 250-299, which means Stop Loss is 25 pips and Profit Targets are 35 and 50, rounded to nearest 5.
Why 26 Weeks ATR?
Twenty six weeks represents 6 months’ worth of data. That is long enough to cover the recent price action but not too long to reduce it’s impact. We don’t want some remote past price action to impact our trading decisions today.
Why two Profit Targets?
Recall we discussed how we want to make the most of a trade when it is in sync with the Weekly chart. This is how we do it. When we get a trade which is in line with the weekly charts we let that trade run until we make twice the Profit Target of our Stop Loss. If it is not in sync then we like to get out early at 1.5% of Stop Loss.
Why is the Profit Target larger than the Stop Loss?
Higher Profit Target basically lowers our overall risk profile. Let me explain.
That’s that. Now, we don’t just wait for the price to hit our Stop Loss or Profit Target; remember I mentioned “babysitting?” Let’s look at what that’s about in the next section.
No TIME!! That was always my problem. This Trade Copier has been long time coming, glad it is finally here.
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