I had a look at the monthly charts to look at the ranges and found that between 1997 and 2003 (top to bottom) a range of 2700pips occurred. In theory with this system it's entirely possible to enter a long position near the top and then have that position go against you for 11 years before it comes back to close to where you entered.
#Isn't this a major risk in this system? It appears to me that this system relies on constant supply of retracements for each move(entered on) in order to continue profiting.
The only plus I can find on dangling positions is that as you continue to profit the drawdown % of the account diminishes as your equity increases(as long as you profit faster than the dangler loses).
Does this make any sense?#
I can close sometimes the last 1.2.3 lots with a loss if we are quite far from entry place.usually working the position allows me to get a profit anyway even if som elots are closed with a loss.
#Isn't this a major risk in this system? It appears to me that this system relies on constant supply of retracements for each move(entered on) in order to continue profiting.
The only plus I can find on dangling positions is that as you continue to profit the drawdown % of the account diminishes as your equity increases(as long as you profit faster than the dangler loses).
Does this make any sense?#
I can close sometimes the last 1.2.3 lots with a loss if we are quite far from entry place.usually working the position allows me to get a profit anyway even if som elots are closed with a loss.