How to correctly scale up ones position? Long term trading

Lately I have been thinking that perhaps the best way to trade forex is also the most boring way.

To find long term trends through the daily/weekly charts, find trendlines, and enter a position based on the trendlines.

I would love to hear comments from people who have been successfully following this type of trading methodology.

Secondly, in your opinion what is the best approach to scaling up such long term positions?

For example, lets say I entered a long position lot and in a month it moved up 300 pips. Would you wait for a pullback to the trendline before you added more to your position? And how much more would you add for each subsequent pullback?

I now believe its futile trying to guess the tops and bottoms in countertrend swing trading. Are our odds not siginificantly better looking at the longer time frame and trading WITH the longterm trend with wide stop losses??

thnx

If wanting to add to long term positions one way I used to do it is to add your profits.

Some time ago I used to take a position (long or short) in GBPJPY and let it run until I had a retrace of 50,61 or 76 mostly it hit 61 and add the number of units my profit accrued thus far would allow me. Sometimes I would add 3,4,5,or 6 times before target was hit. By the time target was hit sometimes I would have an ungodly amount of units at close without risking any additional capital than what I used upon opening the trade.

Any Pair will do and you will be surprised at how quickly your position will grow doing this.

I have since gotten away from this strategy not because it wasn't profitable but because I do not spend as much time at the computerand I do not check my positions but maybe once a day.

I used a 4 hr chart to fib my target and added on the 1 hr chart retraces.

Now I just get my target and let it go until it hits.

Here is what I do. I have a good feeling audusd will be going down for a while now. So, What I will do is wait for price to reach back to the trendline and add to my short somewhere in the area of where I have drawn the yellow circle. I don't put on a full position right away. When the market tells me I am right, I will add more to my position. This is a good way to start off catching tops or bottoms. When I open my first position, if I am wrong, the position is very small and I do not take a big hit. If I am right, I am in early and satisfying my urge to get the total trend. When the trend line is hit, I will add to my position when many are just getting in. That is when I take on a bit bigger position. When major sup/res is broke and held, add again.

Sorry, the circle isn't there. You get the picture though right?

Yes. This is identical to the system I thought of.
Risking little at the start and then adding to ones position later.

However I am still confused about position sizing.
For the Ausie pair you would probably hit the short trigger around 83, and then add to your position if it fell below 82?

But how much more do you add based on your original investment?
If you added alot more than any move against you could wipe out your original profits very very quickly.

How long have you been trading this style?
How has it been working out for you?
how long are you usually in a position?
How many pips stop loss do you usually take?

Here is an interesting idea

http://www.make-money-trading-forex....-strategy.html

what do u mean position sizing how big ur lot should be if yes, low gearing is key in my opinion..


revoke