I backtested @FXCM 's ideas 100 times with several strategies. This research contains: (1) If it is worthy to buy cheaper than @FXCM 's signal. (2) If it is worthy to hunt @FXCM 's stop loss. (3) If @FXCM 's signals take profit too quickly. (4) If the price approaches @FXCM 's target, will it go back to buy entry?
There are 5 strategies in this test case. (1) Original : follow @FXCM 's entry, stop loss and profit target. If there are 2 profit targets in an idea, I treat it as 2 trades. If there are no profit targets in an idea, I use 1:1 risk ratio. (2) cheapo_q : shift down entry, stop loss and profit target by ( entry - stop loss ) * 0.25 . (3) cheapo_h : shift down entry, stop loss and profit target by ( entry - stop loss ) * 0.5 . (4) hunter : shift down entry, stop loss and profit target by ( entry - stop loss ) . This strategy is for hunting @FXCM 's stop loss. (5) reversal : entry of reversal = @FXCM 's target , target of reversal = @FXCM 's entry. Stop loss of reversal : use 1:1 risk ratio.
Quantity per trade: 50 shares for xau 100000 shares for eur,gbp,aud,nzd,usd,cad,chf
Observation * Some signals were generated when breakout, so waiting for pullback may miss some opportunities. * Advice : also consider basics and sentiments to avoid non-profitable trades. * Hunting @FXCM 's stop loss is not profitable enough. * @FXCM 's followers can consider higher profit target but need to protect difficult-to-get profit.