Starting a new Fractal Trading system, and for now I'm paper trading to see how it plays out. So far I seem to have very good profit points, but my losing points are fairly high. the losing points are still not high enough to trump my profits points, but it seems that i could easily do so in those whipsaw moments.
I just started the paper trading yesterday with EUR/USD on the 15 minute timeframe, and I had a collective profit of 1332 points for that day. Naturally I was fairly excited about that figure, but today I had a losing streak that cost me 370 points. It is not a lot of points lost in comparison, but if I were to get too many losing trades in a row, it could destroy my system.
I'm using fractal points as my entry and stop-loss points, and for the most part both work quite well. But if the fractal point for the stop-loss is really far away, I then risk a great deal. I could limit the larger stop-loss points, but then I run the risk of the market blowing past that point only stop just before my previous stop-loss point.
I think my next move is to determine a average to low average profit for every trade, and then make my stop-loss point just short of that, so that I always make more than I loose.
