In today forex faq, we have a question from one of my fellow readers and below are the question.
Of any approach, do you lean toward scalp or swing? Do you have any tendencies toward any methods more than others? Do you use Gartley or Cypher? Do the majors appeal to you most? If not, what are your other alternate currency pairs you like to engage in?
One time I saw you do a trade that was several hundred pips and I wasn’t sure if that was a scalp or a swing trade and to what time frame you were using to set up that trade. That left me inspired because of the money made, but it left me in the dark since I had no idea where to even begin.
In fact, this question consists of several questions and therefore I will answer them one by one
Q1: Do you lean towards Scalp or Swing?
In fact, I do trade the swing and scalp but I will personally prefer swing trading more as it can gives me better risk reward ratio.
For most scalping strategy, it comes with risk reward of <1 which means that you will still be losing money with 1 win and 1 loss.
However for swing strategy, you can easily get 1:2 or even more risk reward ratio which means that you can be making a profit simply with 1 win and 1 loss.
Although scalping does have more trading opportunity but trust me, doing more trades does not always mean more profitable.
If you do 50 scalping trades in a month and let says that you have 40 wins and 10 loss which means that it has a winning percentage of 80%.
(Assuming stop loss at 20 pips and take profits at 20 pips)
40 x 20 pips = 800 pips profit
10 x 20 pips = 200 pips loss
Total profits = 600 pips
Now compare it to a swing strategy with 1:2 risk reward ratio and you only manage to do 25 trades and you have 20 wins and 5 loss which means that you have a winning percentage of 80%.
(Assuming stop loss at 20 pips and take profits at 40 pips)
20 x 40 = 800 pips profit
5 x 20 = 100 pips loss
Total profits = 700 pips
Can you see that you are more profitable with a strategy with higher risk reward ratio even if you have lesser trades.
Q2: Do you use Gartley or Cypher?
If you are a student of my fx course, you will know that one of the modules in my course is Gartley pattern and therefore I am using it. What you learn in my course is the exact strategies I am using to trade for myself and user of my trade copier service.
Personally I have never used the Cypher and therefore cannot give you any comment on it. The Gartley is a good strategy with good risk reward ratio.
Q3: Do the Majors appeal to me most?
For me, I trade only the EURUSD, GBPUSD, USDJPY and GBPJPY.
Q4: You saw a trade that I have taken that gets 100 over pips profits. You want to know whether it is a swing or scalp strategy.
The trade that you have seen is done using the trend strategy that I teach in my course. That trade has a risk reward of 1:4 and above.
One thing I love about the trend strategy is it gives a very good risk reward ratio and that is why I trade the BTB and trend strategy for my trade copier service.
I hope that I have answered your question and do feel free to email me if you have any question
For those of you who are interested in finding out more about the strategies I am using, you can email me at [email protected] so that I can share with you more about my strategies.