Swing Trading On Forex - Forex Forum

Swing trading sits in the middle of the continuum between day trading and trend following.
The swing traders keep their position during 1 day to 2 or 3 weeks.

When I trade I'm a swing trader. I follow the trend, open a positions for 1 to 2 days, take my profit and wait for a new signal.

Hello Arnaud

At first excuse my (very) poor english.

I began Forex with demo accounts 5 years ago but now I've got a real account with real money...

I'm a swinger too,or a trend follower. it depends of the movements of the currencies. sometimes I just come into the market for 1 or 2 days but if the trend is good I 'm able to stay several days or weeks (what I did with USDCAD last year and with GBPJPY since august).

I've a problem with stop losses at the beginning of the trade. I don't know exactly where to put them. Sometimes supports and resistances are too far from the price I paid when I entered the market.
So, I decided to have a fixed stop loss level: 150 pips. I change it when the trade has begun and prices have changed.
With this method, my risk on Sl is 6% of my capital. May be it is not very good but 150 pips are not a lot because I try to catch 300 or 400 pips or more.per trade.

hereby we can see a schedule where I compute winning trades (G) and losing trades (P)(sorry, It is written in French)


Simulation pour 10 trades (account: 10 000 $ or €)
trade perdant: 150 pips (stop loss)
trade gagnant 250 pips (actual average since the beginning: 284 pips)

G pips P pips T pips € %
10 2500 0 0 2500 10000 100%
9 2250 1 150 2100 8400 84%
8 2000 2 300 1700 6800 68%
7 1750 3 450 1300 5200 52%
6 1500 4 600 900 3600 36%
5 1250 5 750 500 2000 20%
4 1000 6 900 100 400 4%
3 750 7 1050 -300 -1200 -12%
2 500 8 1200 -700 -2800 -28%
1 250 9 1350 -1100 -4400 -44%
0 0 10 1500 -1500 -6000 -60%


to read this schedule, it is easy.
example: for 10 trades done, I have 6 winning trades so I win 1500 pips (6X 250) and I lose 600 pips (4 X150). the expected gain is 900$ (or€) = 36%

What do you think of this approach?
have you got any other idea for stop losses?

Thanks

I have the same approach. but I fix the target and the stop and I see if the risk/reward is good enough.
I don't have fixed stop loss @150 pips

Hi

I shorted eur/usd at 1.3000 and intraday climb to 1.3200. earn 200 pips

mine was a pending order if it break resistance, then will trigger at 1.3000, t/p at 1.3200.