Hello forex guys and gals. I hope you’ve had a profitable week. As you may or may not know, I got me a copy of Dean Saunders’s popular LMT Forex Formula manual trading system and I’ve been testing it for a few days now. I patiently awaited a trading signal and at last it has come – horay!
The trading signal occurred on the H4 time-frame. Although I do have LMT attached to the daily chart as well I haven’t received a trading signal on it yet – no doubt because the eur/usd is currently in a uptrend and there is no major change in the trend, thus no LMT signal. I also have tons of other currency pairs that I’m trading using the daily chart, but I’m getting a bit off-topic here.
Here is the trading signal I got with LMT Forex:
2009.05.28 04:00:16 LMT 1.5 EURUSD,H4: Alert: LMT Signal on EURUSD
2009.05.28 04:00:16 LMT 1.5 EURUSD,H4: [L.M.T] : Alert On 2009.05.28 08:00
And here is a screenshot of the trade in action! (still ongoing by the way):
*Click on the image to see it in full detail*
As you can see LMT recommended that I set my take profit at 247 pips. At this point though the trade is well past 247 pips so I’m going to let it ride. I’ll keep an eye on the position and once I’ve got a 100 pip lead above the take profit price level I intend to set the stop loss at break even. At this point though those 247 pips are in the bank.
Another method you can use to lock in profits is to set the trailing stop to the value of the take profit. This way once price reaches the recommended take profit level it will lock your profit it and from that point on any pips you get icing on the cake.
I’ll keep you guys up-to-date on how this system performs.
Oh, I’m also going to open up a forum dedicated to the LMT forex system, so stay tuned to this blog for the update.
Take care everyone!