DislikedI've been looking at posts and trying for solve the issue with huge runs and massive DD and here is what I came up with.
I think I found a way to not only survive, but thrive through a hellish death spiral. Trade in both directions, use multiple limit orders (200+ pips out) to catch big moves and use a 150 pip from average Sl to close all positions and limit losses during a big move. Then when you get a huge move like that September 2008 you make a killing on the winning side and losses are minimal as long as you set up enough limit orders to...Ignored
I don't want to sound rude, but I think you are just throwing darts w/o really thinking about what you are trying to accomplish. And, you need to backtest, whether it's visual or rigorous...
Before throwing away your original idea, you should think about the market, market moves, ranges, and how to tweak your idea. Like others have suggested, the EURUSD is not a prime candidate for a reversion to the mean (RTM) strategy, which is what you are ultimately using. I have downloaded ticks for AUDUSD, USDCAD, USDCHF to see if they are candidates. At least start with the right market.
Then and only then can you start looking at x pips this way, y pips that way. Otherwise, it's just guestimating...
Just my humble two cents...
BroncoCap