“I have read the 10XROI book, and it has inspired me to work on my own setups. The one difficulty I have, which would be the same difficulty as with your system, is that going down in time frame from the daily charts to the hourly charts is a bit problematic for me. I live in New Mexico and I’m asleep during the early trading hours in London so I miss the reversals that occur then.
For example I went long the EUR/GBP at 10:00AM NY time on 11/23, on the hourly pullback after price broke the horizontal range. It was moving in my favor nicely until the early trading hours in London today, when the Italian retail sales numbers fell short. I was shooting for the 10XROI target, made it to about 7XROI. I was taken out at breakeven, had I been watching I could have made 30 or 40 pips.
I had the fleeting thought before I went to bed that I should move my stop, because of the coming holiday, and low liquidity, but I didn’t. I realize this is something you warned about in your book, and I get to experience it on my first trade! (Thanks for that trading Gods)
However, my interest has been peaked and I’m really excited about moving forward with my version of the 10XROI system. One modification I’m thinking of making is trailing on pivots on the 4 hour, or 60 minute charts, what are your thoughts about that type of trailing stop?
My answer to Michael is this
Michael, When you are setting a take profit you need to take into account certain things and adjust your take profit accordingly but it should never fall below a 1-7 ROI, I don’t trade the EUR/GBP because in my opinion it is not a good value pair with a low daily range and a comparatively high spread, if you had been trading another pair you would probably got your 1-8 or 1-10 ROI.
You should not have to stay awake to take your profit, your stop loss is in place and unless an unusual event occurs such as a large parabolic move followed by a pin candle (by which time you should have hit your profit target) there is no reason to exit the trade. These trades are designed to be low stress and with low screen time.
The problem with using a trailing stop is that you can be taken out at a 1-3 roi, 1-5 roi etc with pull backs which completely skews the numbers of the system.
However here is the caveat, you are adapting the 10XROI system to suit your way of trading and if it is working for you and making you profit after you have adapted it then that is fine too.