DislikedIf that's the case, then it's not your risk which gets impacted, but instead it's your win rate. If--after every loss--you increase the TP to compensate, you also reduce your probability of making a profit.
Well, by your system, every time you get stopped out, the TP increases. This will be especially painful if your system is caught in a ranging period. You'll have multiple stop-outs and an almost impossibly high TP which ultimately dwarfs my TP requirements.
Personally, I'm thinking of dreamliner's comment and I think he/she is right. What edge do we have? I suppose I'll just combine my pyramiding with something with a breakout-style system. That seems to be the best option for me.Ignored
That's why I want to try martingaling the first few trades. That would allow the TP to not increase for the first few trades. The success of tkimbles methods have me intrigued to believe that by martingaling and having a set TP level, we can increase the probability of success. Besides, the system does have a chance at profiting in a ranging market depending on how large the range is. It will profit in a trending market. I don't think you can say a lot of other systems have that kind of potential.
Eventually I want to try an 'uncle' point where it makes sense to just reset the system while still having a positive expectancy. Perhaps the ranges can't be too small as the system may need to only play the long term market movement and not in the market noise. Perhaps the best bet is to not martingale and just trade a straight system that institutes the uncle point and trades longer time frames. Trading it on multiple ranges with multiple currencies should create the flurry of activity to keep the profit rolling in.
I never said, 'this system works as described.' I think the idea merits trying to figure out a method that does work.