26 - 30 May

Obviously, this week result is not good. I lose 104 pips this week. Actually most of the signal on GBP/JPY was a good signal, but I lose much on GBP/USD:( Let's take a review on the signals.

The signal appeared on Monday and the trend remain until Friday. It was a good week really. Now let's see GBP/USD this week.

I short the pair on Wednesday, just after the news. I really thought I can get 30 pips from my entry, because on the other hand, EUR/USD kept on falling. I was wrong. The pair reversed to test the previous high where I open my second position. After a few hours I close all the positions because I was afraid it may not coming back down. Again, I was wrong. The pair drop on the next day at the Tokyo session. However, the pair break the channel resistance on Friday so first target is at 1.9845 area.

Okay back to GBP/JPY..
We got a full body candle above the trendline. Maybe now the pair will test for 215.xx area, which is 38.2 retracement of the 251.09 to 192.54 drop. That's all this week, see you on June :)

Previous Week

Stop Loss Using MA Crossover Signal

I just notice something about the MA crossover signal indicator. It seems that the signal appears at some point that can be use as stop loss level. The signal is 13 EMA and 21 EMA crossover and I haven't try with other MA period and I use 1 hour chart. This is what I saw:

You can see on the right side that the EMAs crossed again when the SL level got hit. Here is another.

The particular signal above could really help in that kind of price movement. You can also set your position sizing based on that signal. Well, I cannot post all of my samples here so you can download the indicator below and try it yourself. Have a great weekend all..

DOWNLOAD HERE

Position Sizing for Breakout System

Click here to see the breakout system.

Now, the Stop Loss is simply the opposite signal. So if the long order triggered, then the Stop Loss would be the short order price, which would triggered the short order.
Everyday we'll have different range of Stop Loss. So if you want to limit your risk per trade, you will have to calculate the quantity.
After you know the high and low, and you adjust it with the spread, you can find the range,which is the Stop Loss.

Here is the example from yesterday on GBP/JPY:

Range : H - L = 72 pips
Equity : $100
Risk : 5% = $5
So, the quantity for a position with 5% risk on a 72 pips Stop Loss will be
($5/72) * Quantity Contract Size. Let say it's a mini account so it will be:
($5/72) * 10000 = 694.44 Quantity which is 0.06 Lot.

Actually it is not just for a breakout system, as long you know your stop loss. And this has nothing to do with risk-reward ratio, it is only to limit the risk. Okay hope this information is useful.. :)

Indicators for Metatrader

Guys, I added the 'Downloads' section. This will be the first post under that label. Here I got indicators for MT. I can't remember where I downloaded them, I think it was a forex website or something. I like to browse for MT4 indicators on the web. I like to try those different indicators on my chart, try to learn something from them and eventually I hope I can find my ultimate preferences of indicators. Not the ultimate system, just my ultimate preferences of indicators, which should fit my style of trading. So feel free to download them okay:)

DOWNLOAD HERE