The observation criteria are same as above ie:
i. if waiting to reach 1st TP of 61.8% exp level, exit trade as soon as strong currency <= -1, weaker currency >= +1, OR on FIRST crossover of currencies 0.3-.35 above “new” zero-line
-10% crossover chosen cause many times initial crossovers are just above/below “new” zero line, and this way allows trade more time to move in favour while getting out of bad trade earlier (painful to watch a move towards that 1st TP only to be stopped out at -20pip loss). Most times that crossovers occurred above 0.3-0.35 level above “new” zero line, they ended up being stopped trades, the few that aren’t caught early with this method would be stopped out with initial SL. Often found you could get out of what ends up being losing trade, with a few pips profit/close to BE
ii. once your 1st TP level reached, your SL is moved to BE to lock in profits and continue to use criteria outline(or what scaling out works for you)
2. once in the trade set your TP as usual, but you can be more generous on your SL (reason being that by following the observational criteria you’ll more likely get SLed earlier)… with these observations, set your initial TP always at the 61.8 expnsion level, and if reached (even before the observational criteria) sell 50% and move SL to BE, then if 100% expansion level reached (before observational criteria) sell further 50% and move SL to 61.8% level…. or use whatever other scaling out strategy that works best for you but moving your SL after reaching the 1st 61.8% ext level to BE to lock in profits or avoid losses.
These are purely OBSERVATIONS made on all my trades (Demo & Live…on most currency pairs) and many historical trades.
When selecting currency based on G7-USD, trend pips, fib retracement, stoch etc, then continue to follow just the movement of the 2 pairs on G7-USD
1. btw time of selecting a currency pair and time taken while following when to enter into trade (ie at 38.2, 50, 61.8% fib retract), look at max of strong and min of weak currency on the G7-USD, and average out result… take this to be new “zero” line for this pair
AVOID trade if during this time weaker currency becomes >= +1, stronger currency becomes <= -1, OR if a crossover of the 2 currencies occurs at a level greater than 0.3-0.35 ABOVE the “new” zero line (an arbritary level that seems to allow a bit of lee-way over using a crossover at the “new” zero line or below it; may be more generous towards the 0.35 if range btw max/min of the 2 currencies is say greater than absolute vale of 5)
