Oldhands studies, seem to support Sympatico's layering technique with the 3 hour chart...hmmmm.... LET ME TELL YOU SOMETHING FOLKS, THERE ARE MULTI-MILLIONAIRES MADE OUT OF FOREX
electric here is the catch - think about this carefully the less the drawdown on the unrealized profits, the bigger your trade sizes can be? agreed? so its not the number of pips we take profit on, its the number of pips relative to the unrealized profit thats they key for example the massive one way GBP move from 1.55 to 1.90 in 6 months the following drawdowns on unrealized profit would occur 20 pip - 308 000 pips 30 pip - 205 910 pips 40 pips - 154 860 pips 100 pip - 63 000 pips but anyways seems bad looking at those numbers to recover the 63000 pip unrealized loss at 58 pips per day would take 1086 days!!!! OUCH thats 4 years of trading if the market doesnt turn around to make it worse, would have been short gbpusd, which means heavy interest charges too for this system to work it seems like there needs to be some sort of directional filter or input
didn't you look at the spreadsheet? (see the variable trade ticket column- look at the formula) I am have trouble getting the acceleration right.... Expect to float an unrealized drawdown between 30-40% to be at optimal... Michael B.
Interesting from 40 to 30 pips (25%) drawdown increases only a little more than 25%. seems like the 30 pips area is around the sweet spot...(the pivot point minumum increment rule of 20 pips will give a near average of 30 pips increments while adjusting them to the natural flow, perhaps a 25 minimum will be even better) oh wait I am on the EUR/USD... Also..... Using the three hour chart or 10 pip increment while breachig support and resistance has not been discussed much... Michael B.