DislikedYou can adjust the TP so that you take off more than 1 unit. Say you want to net 15-20 units in the basket, but only if the range exceeds a certain amount (and you have added x number of positions). It makes a lot more sense this way, especially considering that the market moves up and down in waves.Ignored
If you move the TP further out, you increase the chance it does not get hit.
The whole point of this conversation is to establish that the market doesn't always move the way we predict.. be it waves or otherwise.
If the market wants to, it will crash down hard (or rise fast) for days without retracing. It happens. Often.
Atop of that, any change we make to our trade plan, be it TP, stop, hold time, size, etc... shifts our trade's expected return and risk. You can't just say "adjust TP" without violating the reason you got in the trade in the first place.
The shitty thing about strategies that dance with martingale and rely on hope that the 'wave' will come back is that they do have a high percentage of winners and people get very comfortable after a while since that high hit rate gives the impression that it's working for periods of time. Heck, the periods when it seems to work can sometimes last months or years... but it's all for nothing since what truly matters in a system is what you stand to lose when you're wrong.
In martingale's case, not only are your winnings lost, but usually your initial account as well.
Don't reply saying something like "just add a stop loss" or "I use stops too" since that again just shifts the risk a bit but doesn't change much. So you won't have one big loser that takes out your account, instead you'll have a hand full of losers that do it over time. In either case, the use of martingale and hope blurs out any edge you might have had taking a trade in the first place.
Time is the ultimate killer of martingale.
Disliked
We never think about these things when we go for a swim, or fly on an airplane. Do you really care how deep the ocean is, or how high the plane is up in the air? As long as I can maintain afloat and stay alift, I could care less. What is so different about prices in a financial market? I say you focus on the 1/2 that you have control over.Ignored
So I'm pretty much done talking about this with you. I know you mean well but my efforts so far have been for other readers who stumble on this thread, not you, since you seem quite set in your ways and kinda gloss over the points I make with your responses.
I do think you'd benefit from an approach that takes probability and risk a bit more seriously, but regardless I wish you the best of luck trading.
FXGears.com