FAQ

There are many good questions raised by some of you, and I shall answer them here.

Q1. Do you wait till the close of the bar, or just using the MTF stoch indicator make the trade when simply pointing the correct direction?

A1. I wait until the bar ends and the stoch has already confirm its move. Because the MTF indicator is known to repaint itself. So always wait for bar ends. If you are looking at the 4h stoch, must wait for it to end. But most trade are based on 15/30min stoch. So we only need to wait 30 minutes max

Q2. What kind of stop loss do you use? What is the margin requirement on your account?

A2. I usually automatic stoploss all my trades to 50pips in the case of power failure. I give my trades lots of room since I noticed that the drawdown for GBP/JPY is very great. But since I find the stochastic to be strong, hence I usually hold on my trades. Even with 120pips drawdown before!

So for stoploss, there is no limit. If the stoch are against you, then just stop your trade after about 30pips.

My margin is 50:1. Hence when I started with only $2k, I had to be extra careful. But now that my account has grown to 10k, I can take more risk.

Q3. Which broker do you use?

A3. Sorry, I do not want to promote any broker. I am using the broker which offers very low spreads. *Hint: 0.9pip spread for EURO. Guess some of you know already.