For a while, I was attempting to trade linear trends with minimal pullbacks but I found it tough to pull the trigger since I always felt things were overextended. Upon gravitating to more volatile trends with deeper pullbacks, I am much more able to pull the trigger and my $ earnings have shot through the roof. Which kind of trend do you prefer? Please vote and post your explantion.
%% Both; cds are to linear......................................................................................
I am ending up with two basic long-term (forex) strategies - trend-following and break-out. The trend-following strategies are for charts with a simple trend model - they involve entry after trend resumption following a pull-back - trailing stop-loss fairly close behind entry and a TP only a little further ahead. The break-out strategies are for charts which are not trending - entry comes off an inside bar break-out or rejection pattern from a MA - I'm using bracket entry orders (not OCO) for these - when the first order is triggered and the position meets the risk back to the second entry order, I cancel the untriggered order and put in a trailing stop-loss. Both approaches seem viable.
I don't initially set a TP for the break-outs. I prefer to exit these when the chart suggests either the price advance has become unsustainable or its insignificant.
%% Good 2. I may kick one out if its the least profitable; but i may factor on dividends also. I almost never pay attention to super straight trend lines//even sometimes they look predictive in hind sight....................................