DislikedI want to share a strategy with everyone that has worked for me for 30 years. It is proven. It is sound. I think it could work real well with Ata's system. It is solely a strategy of money management. I call it my 3x intratrend system....... Example: Long 1 contract at 1.1400 with s/l 1.1370, t/p 1.1500 You always have a plan, a strategy, research, discipline with a stop etc All markets dont go in a straight line, and has many setbacks intratrend Lets say market goes up to 1.1465, then sells off to 1.1450 (So at this time you still have 50 pips...Ignored
- Positive Case: You opened an X lots trade at 1.1400 and luckily price runs to 1.1450
- You are opening a 2nd trade with 3X lots that will have 5 pips SL.
- Then you are calculating where to trail SL of the 1st trade with help of this formula: Current Price - (3X trade x 5 pips SL)
- Calculated value will be 1.1450 - (3 x 5 pips) = 1.1450 - 0.0015 = 1.1435
- Now you are trailing 1st trade's SL to 1.1435
- 1st trade SL is moved to 1.1435 and thereby +35 pips is guaranteed for 1st trade!
- Sub Case of Case 1: Market reverses and stops out 2nd trade with 15 pips loss and then goes further down and also stops out 1st trade with +35 pips profit. End result is: 35 - 15 = 20 pips.
- Sub Case of Case 1: Market reverses and stops out 2nd trade but then goes back up and reaches 1.1500.
End result: 100 - 15 = 85 pips
- Sub Case of Case 1: Market directly goes up without stopping out both trades. End result: 100 + (3 x 50) = 250 pips.
- Negative Case: You opened an X lots trade at 1.1400 and it gets stopped out at 1.1370. End result: -30 pips loss!
To summarize with most pessimistic and less pessimistic and also optimistic logic:
- A 1:1 win/rate can still be a loss for an unlucky person: One sub case 1 winner: 20 pips + 1 loser: 30 pips = -10 pips!
- A 1:1 win rate for a luckier person: One sub case 2 winner: 85 pips - 30 pips = +55 pips.. we can even add 1 more loser: 55 - 30 = +15 pips in every 3 trades.
- A 1:1 win rate for luckiest person: One sub case 3 winner: 250 pips - 30 pips = 220 pips.. we can even add 7 more losers: 220 - 210 = +10 pips in every 9 trades!
- If we could guarantee 3:1 win/loss ratio, meaning: if we could guarantee at least 2 winners in every 3 trades then this can definitely bring you:
2 x 1st sub case winners = 2 x 20 pips = 40 pips - 1 loser = -30 pips = 40 - 30 = 10 pips profit in every 3 trades!
- If you are lucky then you can even have 3:2 or 3:3 win/loss ratio as long as you make sure that one of your winners is the 85 pips version.
- If you are very lucky, then you can even have 2:3 or 2:4 or even 1:9 win/loss ratio as long as you make sure that one of your winners is the 250 pips version.
- You strategy can work at any level at any given point and doesn't have to start at big round number (BRN) levels like 1.1300 or 1.1700 etc. Important is to find a place where there is the potential of 50 pips move. So one must focus to find an entry that would rally at least 50 pips. That is the trick here and also the hour of news announcements, trump tweets, idle hours or choppy market conditions will affect this system negatively, so those times also must be avoided.
So..... the devil sits in the details they say. Overall we only have to make sure not to lose those initial 30 pips. Meaning we are back at square one: How to enter a successful trade? Once we solve that part out Bob is your uncle. And also, these are 100% certain cases:
- If you can guarantee at least one 85 pips winner or two 20 pips winners in every 3 trades Bob is your uncle.
- If you can guarantee at least one 250 pips winner in every 9 trades Bob is your uncle.
- If you can guarantee only one loss in every 3 trades Bob is your uncle.
Your logic is very good indeed. And personally, I can start trying your logic with this condition: For my next 10 trades, once one of my trades reaches +50 pips profit I will immediately apply your logic combined with my own. That way I would know that in a worst case scenario I would still get 20 pips but that now I have the chance to get an additional 65 or 230 pips more than I planned. I'll keep you posted..