Hi there.
I trade reversals too.
I have a $unit account and use it to make a cheap indicator. Following each trade I enter a single unit triangular hedge. This then shows at the top of my list of trades.When I come back the next day, or whenever, my little hedge tells me which leg/pair is now profitable since my last session. So I sell that leg as my trade, and set up a new little triangle.
The single trade is one percent and each leg I hold is greater than one percent. If the trade I make leaves one leg short, I top up with one percent on each leg.
My trades are all skin in the game, and either purely positive or a discounted loss. The little hedge shows me a positive number to act on and is a valuable psychological reinforcement. The decision making process is mechanical. I am in the game 24/7 and trade on half the total volatility of three pairs. I can trade any time I log on.
So thinking about trading a lot size pair how bout using a triangular hedge in a demo for a signal. The signal is relevant in that the trade will be contrary to the greatest percentage movement since your last activity. Familiarity and experience will be gained with three pairs that are bound to each other. Contrarian or trend trading are absolute philosophies, there is no analysis. The biggest trend must die, and the bigger it is since your last trade, the harder it falls.
Cheerio
I trade reversals too.
I have a $unit account and use it to make a cheap indicator. Following each trade I enter a single unit triangular hedge. This then shows at the top of my list of trades.When I come back the next day, or whenever, my little hedge tells me which leg/pair is now profitable since my last session. So I sell that leg as my trade, and set up a new little triangle.
The single trade is one percent and each leg I hold is greater than one percent. If the trade I make leaves one leg short, I top up with one percent on each leg.
My trades are all skin in the game, and either purely positive or a discounted loss. The little hedge shows me a positive number to act on and is a valuable psychological reinforcement. The decision making process is mechanical. I am in the game 24/7 and trade on half the total volatility of three pairs. I can trade any time I log on.
So thinking about trading a lot size pair how bout using a triangular hedge in a demo for a signal. The signal is relevant in that the trade will be contrary to the greatest percentage movement since your last activity. Familiarity and experience will be gained with three pairs that are bound to each other. Contrarian or trend trading are absolute philosophies, there is no analysis. The biggest trend must die, and the bigger it is since your last trade, the harder it falls.
Cheerio
I have decided to settle for a bit under 1000% growth per anum.
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