1. We are not afraid of not getting every signal. We need sleep. Also the markets are always going to be there. We don't have to get every signal.
a. In the full Pips Predator strategy you follow about 75% of the signals for your time-frame. Why not all of them? Because some are at night!
d. With Pips Predator light strategy you would not be in front of the computer so would either not add to positions, or if you are able, you will add to positions using a pre-defined entry, such as the one below shown in the images, based on the ATR.
g. With Pips Predator you stop loss is not moved, you just add new positions and exit those according to the manual; but for your original entry you either exit at profit or the 3 period low.
h. With Pips Predator light you are at work, so you cannot move your stop loss. You could have a trailing stop loss if your broker permits it, but the further you move from the core Pips Predator strategy, the less your profitability will resemble it.
i. With Pips Predator you exit at the signal for a profit.
k. With Pips Predator you enter at the signal.
Half way between Day Trader and Day Jobber?
So what if you are not always on a day job, but don't have the time to trade full-time? You can see examples in the illustrations below of what you can then do, eg. add positions, but based on specific pre-determined ATR levels, so orders can be placed and left.
b 2 X ATR is double that value. If we set a stop loss at double the ATR, we know it won't get hit by just market noise.
c Risk Capital is your risk capital, assume here 10,000. You can enter the value here.
d. Trade risk is how much of your capital you are willing to risk ie lose in any one trade. We assume here 1% and you can input 2% if you prefer.
i. We know if we do add to our position, to move our stop loss up (to our new entry).
7. We can exit either when the stop loss is hit, or the Pips Predator tells us (I prefer when PP tells us, but if you're not in front of your screen all the time then when your stop loss is set is fine).
8. But if you're not in front of the screen, how do you know the Pips Predator will signal a buy signal? You use the 4h or 1d chart, and you look for the latest signal. If you've only missed the entry by relatively few pips, then that is fine, you still enter; after all you will only have missed a few pips, and the PP will more than make up for that in bumper profits.
Finding Opportunities Quickly from Alpesh Patel on Vimeo.
Tile Your Trading Screen from Alpesh Patel on Vimeo.