First let me pose a question then qualify it with certain "definitions".
What's wrong with "hedging" the forex market? By that I mean, taking opposing position in the same market at the same time?
Of course I wouldn't do it recklessly or indiscriminantly, but I believe there is a solid basis for doing this and have 3 years of hard data to back up my assumptions.
Using price action signals or candlesticks it is clear that this method has value but fall short (as does every other method) on picking direction early enough to catch a change in directional bias (read "trend") until its too late. Thus why not take a trade in which ever direction the market indicates regardless of the "wiser minds" who say, "...the trend is your friend..." and any other host of cliche catch phrases meant to keep you on the wrong side of the market.
Example trade: long on (pick your pair) on a daily price action signal, hammer or piercing line. Hold trade until an opposing price action signal, say a dark cloud or shooting star. At the opposing signal close 1/2 the long and enter a short. If the short signal confirms close out the rest of the long and hold the short until the next opposing (this time long) signal. Rinse...repeat until rich.
Using this idea (with a few refinements) I have been able to show significant gains over the course of the last three years. Most each year doubles the account or comes very close to it (90% gain), with only 1% risk in each trade.
So someone tell me what's wrong with this method of trading, or am I just so stupid I've only recently figured it out.
What's wrong with "hedging" the forex market? By that I mean, taking opposing position in the same market at the same time?
Of course I wouldn't do it recklessly or indiscriminantly, but I believe there is a solid basis for doing this and have 3 years of hard data to back up my assumptions.
Using price action signals or candlesticks it is clear that this method has value but fall short (as does every other method) on picking direction early enough to catch a change in directional bias (read "trend") until its too late. Thus why not take a trade in which ever direction the market indicates regardless of the "wiser minds" who say, "...the trend is your friend..." and any other host of cliche catch phrases meant to keep you on the wrong side of the market.
Example trade: long on (pick your pair) on a daily price action signal, hammer or piercing line. Hold trade until an opposing price action signal, say a dark cloud or shooting star. At the opposing signal close 1/2 the long and enter a short. If the short signal confirms close out the rest of the long and hold the short until the next opposing (this time long) signal. Rinse...repeat until rich.
Using this idea (with a few refinements) I have been able to show significant gains over the course of the last three years. Most each year doubles the account or comes very close to it (90% gain), with only 1% risk in each trade.
So someone tell me what's wrong with this method of trading, or am I just so stupid I've only recently figured it out.