Llambert3,
Good question. The answer lies in the doubling value once you get a significant number of losses, which this system does have (up to 7-9 as mentioned before).
Also, spread is taken into account already so that pip numbers below are net.
Take the following example that you came up with below, and just add a few more losses:
Day 1 +55
Day 2 +55
Day 3 +55
Day 4 +55
Day 5 + 55
Day 6 +55
Day 7 +55
Day 8 +55
Total = +440
Total increase in account is $440.00
Now take the below, and just carry the losses out a few more times:
Day 1 -50
Day 2 -100
Day 3 -200
Day 4 -400
Day 5 -800
Day 6 -1600
Day 7 -3200
Day 8 +7040
Total = +690.00
Total increase in account is $690.00 That is $250.00 more in 8 trading days, or $500.00 more in 16 trading days.
As I mentioned, this system does best when stringing together some losses.
Good question. The answer lies in the doubling value once you get a significant number of losses, which this system does have (up to 7-9 as mentioned before).
Also, spread is taken into account already so that pip numbers below are net.
Take the following example that you came up with below, and just add a few more losses:
Day 1 +55
Day 2 +55
Day 3 +55
Day 4 +55
Day 5 + 55
Day 6 +55
Day 7 +55
Day 8 +55
Total = +440
Total increase in account is $440.00
Now take the below, and just carry the losses out a few more times:
Day 1 -50
Day 2 -100
Day 3 -200
Day 4 -400
Day 5 -800
Day 6 -1600
Day 7 -3200
Day 8 +7040
Total = +690.00
Total increase in account is $690.00 That is $250.00 more in 8 trading days, or $500.00 more in 16 trading days.
As I mentioned, this system does best when stringing together some losses.
DislikedMike, if you are going for 55 with a s/l of 50 (say with 5 pip spread it equals 55 total), then how can your statement above be true?
Example
Day 1 +55
Day 2 +55
Day 3 +55
Day 4 +55
Day 5 + 55
Total = +275
Day 1 +55
Day 2 -55
Day 3 -110 (2 lots)
Day 4 -220 (4 lots)
Day 5 +440 (8 lots)
Total = +110
Therfore, day 5 is just making day 2 a winner. It would seem best to win everyday.
What am I missing?Ignored