So tell me why this system wouldn't work

OK, so I believe this may be close to the martingale system, but I'm not sure. Haven't really looked into it.


But with this system you start off with the current price (1.5000) and set a buy limit for (1.5010) and a sell limit at (1.4090). Then you set your buyTP 10 pips above your buy, and set your sellTP 10 pips below your sell order. Also, your Sell SL is at the same price as your Buy TP, and vice versa.

So, if the price goes up, triggers your buy limit, then your buy TP, then thats a good 10 pips (spread excluded). However, what happens when your buy order is filled, but it doesnt go high enough to fill the TP? Could you possibly wait for it to trigger your sell limit as it goes down, with the only exception being that you double your new sell limit? Then, after your sell limit is triggered, it will fill your sell TP. Although, if it doesnt, then you could double your buy limit to a total of 4x the original price. And keep doubling until one of your TP's are filled.

The main problem I see is margin. But you could only trade something like this with .01 lots.

Buy Limit occurs but doesn't touch TP instead falls to SL -20 pips
Sell Order triggered and doubled touches TP for a profit of 20 pips (2xLot of buy)

P/L = Triple Spread loss.

For this to work you must triple or quadruple your orders on targets not being hit.

This is a martingale system.

Also note that your value of 1.5000 could possibly be a psychological support/resistance, or a current support/resistance. This system would work but I'd tie it up with a few indicators. Keep in mind you will have that death trade occur on those ranging days, and the times the market consolidates inside a fine bracket.

If I were you and you wanna get rich in this market. Stick to trend confirmations and inside bar trading.

Look here.......http://www.forexfactory.com/showthread.php?t=109589