EURUSD: stopped out 1.2960

13.34 bst

I should add a rule to go flat before crazy data events like the ECB conference. I’ve been stopped out at 1.2960, -58 pips. I’m staying out until the ECB dust settles.

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4 thoughts on “EURUSD: stopped out 1.2960

  1. Daniel

    But isn’t your superb return post fomc is because you are in position prior to Ben’s taper statement? If you are flat you may still enter afterwards but your stops will be much wider and the position is much smaller, no? I think you should accept that getting stopped out is part of the game and just flip it as per your system without emotion, like what you’ve been saying before…. This is where money management and appropriate level of leverage is important I guess…

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    1. ZenFXTrader

      You got a point which I have not fully resolved – what to do around big data events. Some of the big winners happen around these events. I’ll give it some more thought, but I tend to think that the way to go is choose the right stop level and flip instantly. That brings up another practical problem that the system overlooks – slippage. For the cable, I suffered a slippage of 50 pips by the time I entered the sell orders. For the EURUSD I took the precaution of entering a hard stop before the ECB. That is the way to go – choose an appropriate stop level and put in hard stops. In this case choosing the stop level becomes extremely important.

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      1. Daniel

        Zen, if you have time, I think you should do some analysis whether there is an “optimum” stop level criteria for your trade entry. For example, if you can come to the conclusion that you will ignore your system trade and remain flat if the stop loss is bigger than xx pips, does it give you a significantly better return compared to if you always take the trade?

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      2. ZenFXTrader

        Yeah, the stop loss level is very important in my system. A poor SL level changes things dramatically. I tend to be conservative and take very wide stops. With a fixed % money management system this means the trade size becomes smaller. I’ll be doing some research and thinking on this topic.

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