So be it if that is the case. All I know I have seen all the setups before you have posted them and also have profitable trades on many other cases. I only use 1HR and 4HR charts.

This is really great. I am so glad to hear it. You are using this system better than me

hi Bill,

you are right, i have been following Vahid's RSI breakout . However sometimes i also check whether EMA21 criteria is also formed to confirm further.

Thank you for sharing. Would like to hear your experience how you confirm and trade Vahid's RSI breakout to increase the success rate.


Thanks,
hum

Hey Hum,

I have been doing quite well with the RSI breakout system. I actually took the 21 EMA off my charts because it serves no better purpouse then the bollinger middle band. I did have a loser yesterday on GPB/USD because I neglected the fact that it had broken the support trend line and had started a new downtrend and I went long(Vahid pointed this out to me). Now I know I must keep my major trendlines on the chart and to not trade against them. I still keep my 55 EMA on the charts to help point out the trend but I know I must keep the support/resistance trendlines visible so I know when a trend has been broken or if it is a continuing trend. I went short this morning on AUD/CAD on the 1 HR chart and it has hit my first target and we will see if it does any better. The lesson I learned yesterday was draw my trendlines and don't trade against them. Thank you Vahid for shortening the learning curve. I would like peoples opinion on profit targets for this system.

Bill

Hi Bill,

You are welcome.

The other point is that if you just wait for a good trade setup, like those we had this week, USD-CAD, USD-CHF and also NZD-CHF that are supported by bigger time frames too, you will have a higher success rate.

Yes I was able to take advantage of the USD/CAD and USD/CHF. Very big winners, that is why I was wondering about profit target strategy for this system. I have my own idea but I would like to hear others.

Bill

hi Bill,

Thank you for sharing your experience. It is enlightening.

I normally set the profit target to T1 as most of the time i do not have time to monitor and move the stop loss to break even when the first target is hit.



Thank you,
hum

I usually take it as 1:1, as I also don't always have time to monitor the trades full time. If it is against the trend and I deem it quite risky, I will use the 1:0.75 (take profit at 1/2 the SL and then the full SL). If it is with a major trend on a longer timeframe I will sometimes use 1:2 risk to reward, but I find I very rarely do this (maybe the more comfortable I become I can increase this).

Bill

Targets are the hardest part for me now (closely followed by discipline but thats another story...) Having looked over my past few months trades they seem to mostly fit three categories.
1. Trades which went positive but ended up closed at a loss or breakeven.
For lots of these the targets were set wrong. Maybe I decided to aim for T2 when T1 was the only realistic option.

2. Trades which closed for a profit but many of them were closed too early.
Sometimes I close at T1 or T2 because I don't want to lose the gains I have made but had they been left to run I could have made much more.

3. Losers. Never got anywhere near a target and were closed by the stop loss.
Nuf said

I find that I can't use Vahids ratios (1:0.75 etc) when looking at trades. I have to come at it from the other direction.

I look at the charts to see where the support/resistances are and if there are any other levels, eg fib, BB, round numbers. From that I try to decide where the price is likely to stall and that becomes the basis for setting targets. Once I have a sensible guess for a first target level I can look at the stop loss level and then calculate the ratio and decide if the trade is worth taking.

The hardest bit is when to close trades. Should I simply keep moving the target and stop until the stop gets hit on a rebound? Should I try to categorise the potential target levels and close if a significant one is hit? Should I try to use something like the EMA RSI indicator or the 60 and 100 SMAs to identify major pull backs?

Not much advice I'm afraid but thats where I am just now.

Michael