DislikedA while ago I asked the same question and even posted charts to make the point. Once you start building up a position, you should keep your own pace with +-%. Let's say August 7th 0% line was at 1.6330. Your position in following days would be built like this:
Long @-.25% 1.6290
Long @-.50% 1.6250
Long @-.75% 1.6210
Long @-1.0% 1.6170
You'd had 4 lots (average price 1.6230). On August 12th high of the price reached up to 1.6240. 4*10-spread= no loss or tiny profit, but now you are all money and can start building on a short side.
That's how I understood it. Doesn't matter what everybody else is doing at the time, once you started building up a position you should do keeping increase or decrease in % from the 0 line you started from.
then you close the position when you are profitable or at least b/e if it is a long trend against you.
There is also a hint, exiting half of the position at 0 line, but to be frank I don't get it. For me - averaging of a price and exiting with profit from average price looks good enough if I were in trouble.Ignored
I had the same problem with this. I had some days where I would do well, or would have done well if I had closed all positions then. But then others where I would hold on to them and add to them as I understood the rules and it would just keep going and going against me.
It would be great if there was a clear-cut set of rules for exactly what to do and when to do it.
Maybe I'm not to bright, I don't know, but I have been following this thread from the beginning and I still don't have an exact system to follow that produces consistent results.
I have always heard that if you don't have a system that you can explain to someone else rather simply then you don't really have a system.
There seem to be some people who are profiting from it but I still am not clear.
Hopefully there is some way to make it more easy to know how to trade it instead of being so confusing.
PD