Timeframe: hourly chart
Instrument: a major currency pair
Time: open at the start of a new candle – whenever you identify a signal/opportunity
Risk/Reward: 16 pips SL and 40 pips TP

Don’t close a trade before SL or TP is reached

Position size: 50k

Take 10 trades following these guidelines

The Risk/Reward:

Goal One: 3 wins = +120 pips and 7 losses = -112 pips. Net + 8 pips
Goal Two: 4 wins = 160 pips and 6 losses = -96 pips. Net + 64 pips
Goal Three: 5 wins = +200 pips…5 losses = -80 pips. Net + 120 pips

Conclusion: this is an exercise in trading psychology as well as technical analysis. Knowing that being right 3 out of 10 trades is a minimum break even and isn’t an intimidating goal. Practising to reach 50% of your trades being winners isn’t unreasonable. At the end of the 10 trade trial, look for common denominators in your winning and losing trades; see which indicators worked best and note the times the trades were opened. Build on your strategy and understand and analyze the results.

“Every successful trader is an educated trader.”