What I now know

I've learnt so much in this 2 years about forex trading. Now, I understand that the hunt for a perfect strategy is quite a waste of time. Yes, it's important to find a strategy that works somehow, but even a simple one would do. What works for me is a breakout strategy.

What I do is, right after 3.05 pm (GMT+8), I look at the GBPUSD chart and place breakout trades. It's not a hard and fast rule of from what time I create the channel. It depends on the look of the chart. If there was a big move early in the morning, and things only consolidated from, say noon onwards, I'll trade the breakoust of either the high or low of that channel. Sometimes, when I see that there's been a move for the last half an hour, either up or down, and more often that not, right at 3 pm, the move takes a breather. I'll then trade the high or low of the previous bar (I normally look at the 15 minute chart).

Yes, there will be losses. The important thing here is money management. My stop loss is always 27 pips per minilot. Sometimes, if I'm stopped out at the 3 pm trade, I allow myself to enter again after 6.05 pm. If I lose again, I don't try until the next day, 3 pm. Sometimes I get a bad week. I might Monday through Friday, and only get a win on the following Monday. But I can handle the pressure of that now. No system is perfect. As long as I stick to my money management rule, I'm fine.