This got me thinking about how it would be great to also have some 4 hour chart strategies that would still have excellent risk reward ratios, but would be trades that I would only have to check once or twice a day. In addition, Metatrader 4 alerts could also be a big help in detaching me from the computer screen.
Although trades based off the 4 hour charts would probably have larger stops, the rewards could be as follows:
- Larger profit potential.
- Trade entry time is not so critical. I would not have to get into a trade right away, there would be more room for error.
- Trading a longer time frame would give me more time to do other things I love to do.
- Backtesting is easier because there would be fewer setups per time period.
- Since I could test more pairs, I could also trade more pairs, providing more opportunities.
- Once I master a profitable strategy, I could teach it to people with day jobs.
- It would allow me to practice patience and not trading for the sake of trading.
My only apprehension is that I have been known to get antsy in the past when trading a four hour strategy. Anyway, those were just some thoughts that I had on my trip.
I will probably hold off for now, but a four hour trading strategy or two can definitely have a place in a trader’s arsenal.