I am starting this thread in order to develop a system based solely on scaling into a position.
Here are some rules to start with, to be built upon later:
1) Make only one trade per day per currency pair (preferably at the same time of day)
2) When a trade goes against you by 75 or more pips (depending on the pair), add to the position in order to bring your cost basis down to the average of the entries. Do this each day, as long as the price remains below 75 pips from the initial entry to average down the price even further.
r
3) Depending on the pair, if the price drops less than ~75 pips, do nothing.
4) When a trade goes in your favor by any significant amount (this depends on how many positions you have on - ie. 25 pips if one position, 12.5 pips if two, etc..) close out the position and take profit.
5) Re-enter the trade immediately after taking profit with one unit at the current price.
6) Use small enough lot sizes that if there is a big spike against you, it doesnt wipe out your account.
7) Do this on a trending or ranging currency pair to capture the most profit
8) Do this on a currency pair that pays positive swap
Thats it for now... Nothing toooo crazy.
Im currently testing this on USD/JPY, EUR/JPY, and GBP/JPY with long positions and getting outstanding results - over 40% gain in accout balance in the last 2.5 weeks. I am curious, however, how this strategy will fare for EUR/GBP - this currency has been in a small range forever and seems well suited for the strategy.
Here are some rules to start with, to be built upon later:
1) Make only one trade per day per currency pair (preferably at the same time of day)
2) When a trade goes against you by 75 or more pips (depending on the pair), add to the position in order to bring your cost basis down to the average of the entries. Do this each day, as long as the price remains below 75 pips from the initial entry to average down the price even further.
r
3) Depending on the pair, if the price drops less than ~75 pips, do nothing.
4) When a trade goes in your favor by any significant amount (this depends on how many positions you have on - ie. 25 pips if one position, 12.5 pips if two, etc..) close out the position and take profit.
5) Re-enter the trade immediately after taking profit with one unit at the current price.
6) Use small enough lot sizes that if there is a big spike against you, it doesnt wipe out your account.
7) Do this on a trending or ranging currency pair to capture the most profit
8) Do this on a currency pair that pays positive swap
Thats it for now... Nothing toooo crazy.
Im currently testing this on USD/JPY, EUR/JPY, and GBP/JPY with long positions and getting outstanding results - over 40% gain in accout balance in the last 2.5 weeks. I am curious, however, how this strategy will fare for EUR/GBP - this currency has been in a small range forever and seems well suited for the strategy.
