Hi Calculus,
Long time reader of forex factory but first ever post! i've read this thread several times and I do believe this is the way to trading success certainly for my style of trading, to suit my personality and time commitments etc.
The reason I address this post to you is that I think you're based in the UK same as me, but I would value opinions from anyone. My main issue with forex and building an equity millipede is time! I work 8am-7pm and have no way of trading during the day. My interest in forex is not to replace my job, as I enjoy what I do but to supplement my income.
I do trade a successful variation of this strategy by entering trades at round numbers in the direction of the main trend although this requires quite large stop placements. I have done a lot of work on risk management so my trade management is good and although the stops may be quite large my risk is limited at all times as I value capital preservation.
As I say this is a successful method but I feel by not stacking I am possibly missing out on some profit potential. For example say I open positions at whole round numbers and the market moves 1000 pips and all legs survive I would only have 10 positions. Now these 10 positions may be worth multiple times my starting capital but it reduces my scope for diversification due to wanting to keep all the positions on the table with the possibility of making further gains.
I have considered opening positions closer together say 25 or 50 pips apart but then I do not have the opportunity during the day to move stops to break even. I then have the increased chance of being whipsawed out of positions and thus higher risk and capital erosion. I have thought long and hard about ways of improving my method and entering more trades during prime opportunities i.e. stacking but I cannot see a way.
Any help, advice or opinions would be gratefully accepted and appreciated.
Many thanks.
Long time reader of forex factory but first ever post! i've read this thread several times and I do believe this is the way to trading success certainly for my style of trading, to suit my personality and time commitments etc.
The reason I address this post to you is that I think you're based in the UK same as me, but I would value opinions from anyone. My main issue with forex and building an equity millipede is time! I work 8am-7pm and have no way of trading during the day. My interest in forex is not to replace my job, as I enjoy what I do but to supplement my income.
I do trade a successful variation of this strategy by entering trades at round numbers in the direction of the main trend although this requires quite large stop placements. I have done a lot of work on risk management so my trade management is good and although the stops may be quite large my risk is limited at all times as I value capital preservation.
As I say this is a successful method but I feel by not stacking I am possibly missing out on some profit potential. For example say I open positions at whole round numbers and the market moves 1000 pips and all legs survive I would only have 10 positions. Now these 10 positions may be worth multiple times my starting capital but it reduces my scope for diversification due to wanting to keep all the positions on the table with the possibility of making further gains.
I have considered opening positions closer together say 25 or 50 pips apart but then I do not have the opportunity during the day to move stops to break even. I then have the increased chance of being whipsawed out of positions and thus higher risk and capital erosion. I have thought long and hard about ways of improving my method and entering more trades during prime opportunities i.e. stacking but I cannot see a way.
Any help, advice or opinions would be gratefully accepted and appreciated.
Many thanks.