about strategies

Hello guys. It is not long time I began trading forex. Now I think I have new strategy (I do not know if this strategy existed before, but I think it is good strategy. If I am wrong please tell me). What I have in mind? Assuming that we open two accounts with 1000$. market rate is EUR/USD 1.2545/1.2548. At the same time Selling 2 lots (20K) from one account and buying another 2 lots from the second account. We have unrealized loss -12$. Now if there is strong movement in the market we will add another lot to the gaining account and contract position to 10K on another (losing account). So profits are rising more than it was rising before we added another lot and loss is rising smaller than it was before. If market is going to the direction of gaining position we can add another lot and so on.
Now If market is going against gaining position. As it happens we are covering gaining positions one by one, for example we cover first 10K then another 10K and so on. At the same time the loss is declining on another account and we can even add lots on this account. If market is going to reverse again and continues previous trend so we are doing the same as described above. OF course this study is not risk-free but I think is less risky and it is easier to determine s/r levels after entering market than before entry. If I am wrong please do not hesitate to answer.

can you tell me why you need two separate accounts? it would seem you could do your strategy with one account...

Sounds more like openning a "BUY" and a "SELL" at the same time.

Yes, opening a 'Buy" on one account at 2 lots and at the same time "sell" 2 lots on another. This study is good, because it is much easier to determine trend and s/r levels after you enter the market. And as big move begins either up or down you are adding gaining account more lots and contracting position to minimum on losing account. If suddenly trend reverses you are taking profit, selling (buying) 10K then again 10K, and you can even add lots to losing account. If now trend again reverses you are doing the same as described above. Now I am trying to verify this study on DEMO accounts. But you should look price action all day to find big moves. I think during fundamentals it will be good strategy. We will see if this strategy works I'll check it on DEMOs.

Two accounts are needed, because you cannot sell EUR on one account and buy at the same time. Doing so you open position and cover it immediately, you will have realized loss -6 (20K). I do not know if it is possible to do at other platforms, but the platform I am trading does not support that. this means opening position and covering immediately and you are losing spread.

FX Solutions (www.fxsol.com) will let you place and Buy and a Sell at the same time. One will not cancel the other.

I do not see the point in doing it this way. If you start with 2 lots long and 2 lots short you've wasted two spreads while waiting for the market to move. Why not just wait for the market to move, and then enter the trade. I admit I have not given this a lot of thought, but my first impression is that the extra spreads will eat up too much profit, if not all of it.

GCI Trading also allows you to "buy" & "sell" with the same account. I'm using Global Trader, they also allow that.

I know someone that trades similar to this. He opens a "buy" and a "sell", but he puts his stop and limit in. When the stop of the one is hit, then hopefully the limit of the other will be reached. He doesn't trade full time and that's only on demo so far. My point to him was "what if, after your stop of the one is hit, the market turns around, and your limit isn't reached."

But like you said, you got so see the action all day. Good luck with your experiment.

Thanks. I think this strategy works well. I do not say that it is risk-free, because if there is profit there is risk too, but is less risky. And however has one lack: you should look quotes all day and find strong movements. This strategy is good when there appears a window and during impacting fundamentals.

You would have to be very accurate in determining the reversal points in the market though considering the spread. If you can determine the reversals accurate enough you probably could make more money just buying and selling the reversals or using futures to hedge. I would be interested in your finding though if you pursue it.

I gained 25 pips following this strategy. Of course it is not good result, but following this strategy your nerves are soothed and you feel like you are relaxed. Also I discovered there another adventage of this strategy. for example: current rate is EUR/USD 1.2130/33 you sold 10K and bought 10K you have unrealized loss -6$. then rate goes to 1.2160/63 now you can sell again 10K and buy 10K. YOu have average rate on the first account (where you sold) 1.2145 and 1.2148 on the second (where you bought), therefore loss is -12. But what you get: if rate moves in a narrow range it will reach 1.2148 from 1.2163 faster than it would reach 1.2130. So if you think S/R levels are nearer with each other than you expected when you entered the market, this strategy is appropriate. Today I discovered this as EUR/USD traded in a narrow range than I expected.

Trade and keep your nerves relaxed.

I think following this strategy you can trade if price goes against your anticipation. So you can make money either on falling and rising markets?

Hi guys! I`ve just opened a demo-account to find out if i can trade... With one order on "sell" and another "to buy" and anyway lost money on both orders at the same time. How!? Is these is any way to earn money!?

What is the purpose of making 2 accounts in the strategy?

Traders in the US are not allowed to "hedge" a pair in a single account. US-based brokers are banned from offering this trading option in a single account. And, US-based traders are not allowed to open an account with a foreign forex brokers
Edit: By the way, it's a stupid strategy. You will never make money doing it, and will definitely lose money...quickly. Just freaking learn to trade!

the answer that makes sense. I agree with your opinion about 2 accounts.

Exactly my thoughts, what if things go wrong with both accounts. Am just saying, the market can take a swing at anytime and sometimes things don't go the way we have planned it. And if this happens you will come to great lose.