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Strategy fine tuning

1) Missing out on trades that ALMOST touch EMA 62.

Solution

Instead of waiting for the price to touch the EMA 62, I am considering a trading zone.

EMA 38 and EMA 62. So long as price enters and signals are given (i.e. MACD decreasing/increasing, Stoch crossover), entry is valid.

Signal Zone

Because you cannot tell the price to move where you want and hence will never be able to get a perfect entry price, having a zone makes sure you do not miss out on trades.

2) Not knowing how much to target each trade.

Solution

I will target 20-25 pips for all first trades made each day. If target is hit, subsequent trades I will

i) shift to break-even whenever possible so as to make it a risk-less trade;

ii) trail by 20 pips to capture more pips if a trend is strong and to reduce risk .

This way I ensure my daily target is still met, when and only when target is hit do I switch to aggressive mode and aim for more pips.

I would rather make consistent 20-25 pips daily than get stopped out like the AUDJPY trade last Friday.

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