After almost 2 weeks of trading my plainly named system, the "H-system", I've received mixed results.   Results looked great after week #1 but since then, I've suffered 3 straight losses on Monday, Tuesday, and today.  So far, this system has 5 wins and 5 losses but I'm still up 109 pips or $1090.  

I said earlier that I may need to reevaluate my stop loss strategy which I am now doing.  The last 2 losing trades could of easily have been wins instead of losses.  To address this issue, I've decided to tweak my system a bit.  I've widened my stop loss and have moved it to the next level of support and resistance.  Whereas before, I was setting my stops at the 2nd level of support/resistance, I am now moving it to the 3rd level of support/resistance.  This will on average increase my stop loss by 6-10 pips per lot and therefore increase my risk.  I will only be using the 3rd level of support/resistance for the early morning European session where these spikes are happening.  If the US session opens and I'm managing an open position, I will move the stop loss back to the 2nd level of support/resistance.  If a trade is initiated during the US session, I will continue using the 2nd level of support/resistance.   

So I've increased my exposure a bit and I'll just have to wait and see how it turns out. 

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No. 1 :

Hey Rich,

How did you backtest? If you are any good with MQL it's pretty easy to knock together something that will test a system. If you have any questions give me a yell, it feels like I have tried about 10000 systems :(

Submitted by Craig • 2007-02-24 12:55:58

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