As many may know, averaging often leads to disaster as we add volume to our wrong decisions.
We wanted to check how the results will differ if we change possition management
from averaging down to addind to profitable positions.
So for example, when we are 30 pips from entry (on profit) we can add another trade in the same direction.
Therefore, at the end our profit should grow bigger.
This approach seems to stand on much more solid, logical background.
Of course, it also has some disadventages.
BE moving closer and closer while our profit grows, it's much less confortable than in situation when BE gets closer when we are loosing money.
However, it may be better to try to protect our profits than waiting for BE with enormous exposition and heartbreaking loss.
You can test it by yourself with demonstration version (CaterpillarFX) available on caterpillarfx.com.
We wanted to check how the results will differ if we change possition management
from averaging down to addind to profitable positions.
So for example, when we are 30 pips from entry (on profit) we can add another trade in the same direction.
Therefore, at the end our profit should grow bigger.
This approach seems to stand on much more solid, logical background.
Of course, it also has some disadventages.
BE moving closer and closer while our profit grows, it's much less confortable than in situation when BE gets closer when we are loosing money.
However, it may be better to try to protect our profits than waiting for BE with enormous exposition and heartbreaking loss.
You can test it by yourself with demonstration version (CaterpillarFX) available on caterpillarfx.com.
Check CaterpillarFX