DislikedGreat post, you are starting to think like me. I will be using the 200 MA and using my new EA for trend following trades. How did you know I would do that. Hmmmmmmmmm.Ignored
This is something I thought about doing, or have actually been doing a little of in one of my live accounts:
L1 trade entered, market continues against me for another 200 pips (.01 lots)
L2 trade entered, market continues down against me for another 100 pips (.02 lots)
S1 trade entered (hedge of L1), market continues down against me for another 100 pips (.01 lot to counter the L1 trade)
L3 trade entered at -400 pips (or whatever market says) (.04 lots)
Market retraces + 200 pips (50% fib) and I exit all positions for healthy profit.
So, my thinking I guess is if the market does continue against you, why not negate the first couple trades as they move against you more quickly. You have probably already said this, but my thinking is to hedge 1.5 times my entries. If the indy says to enter every 200 pips, then my hedge for that entry is 300 pips later.
If you get a big 1500 pip move like early May, than it wouldn't be nearly as bad and you don't close your trades. You could go more levels due to less draw down and hopefully climb your way out of it...
What do you think?
We are our own best indicator.