According to our HH Strategy, whenever the market breaks the level of previous high, a Buy trade is opened and the previous low of the market becomes the SL. This strategy works in the direction of the market. As the market goes Higher High, the SL keeps getting closer to the trade price. And due to this, the loss is minimised and we can get the maximum profit. This HH Strategy can be seen in the two screenshots.
If you look at the first screenshot, then you can see that there was a Buy trade entered on 31/1/2012 at the price of 5224.95 with a SL of 5101.10.
As the markets moved forward, we got second opportunity to enter the market in case if we missed the first entry. This opportunity was created on 1/2/2012 at the price of 5234 with the SL 5178.50. Also if entry was gained the first time then the SL of 5101.10 got updated to 5178.50.
Looking further the same screenshot, we can see that there was the third entry point on 3/2/2012 at the price of 5299.90 with the SL 5253.05. Thus the SL keeps getting updated with the market.
Similar thing happens in the second screenshot too and we get two more entry points with two new SLs.
Similarly the LL Strategy works when the market is bearish and that can be seen in the screenshot.
Now because the markets were bullish for so long, we got 6th entry point according to HH Strategy on 16/2/2012 at the price of 5564.45 with the improved SL of 5501.55.
Now on 23/2/2012 market broke the level of 5501.55 which was the previous low and also our SL. From there we got an entry for Short according to our LL Strategy with the SL of 5700 which was the previous high. But similarly when the markets moved forward in a bearish direction, our SL got improved in the same way when our markets were bullish. (SCREENSHOT 3)