If you are long gbp/jpy and short chf/jpy you are long gbp/chf. The only way this strategy would work is if you had lots of capital. This has been discussed before though. If the gbp/chf drops 100 pips you enter, then you enter again, and again and again and again every time there is a 100 pip drop. You can carry that trade and make good interest while you wait for your averaged position to move upwards.
Though you would need at minimum a 100 or even 200k account to feel comfortable with standard lot entrances at a time. Considering that safe averaging is always 1,2,3,4,5 and not 1,1,1,1,1. This is to make certain you dont ever need to get even close to your initial entrance.
Though you would need at minimum a 100 or even 200k account to feel comfortable with standard lot entrances at a time. Considering that safe averaging is always 1,2,3,4,5 and not 1,1,1,1,1. This is to make certain you dont ever need to get even close to your initial entrance.
The market is my nation. Traders, my family. Hello, brothers and sisters!