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Mechanical trading idea

  • #1
  • First Post: Sep 25, 2010 1:15pm Sep 25, 2010 1:15pm
I am posting this to see if it has any chances of improvement: Buy 1 lot and sell 1 lot.
If it goes up x pips, close the 1 lot bought and buy 0.5 lots.
If it goes up another x pips buy another 0.5 lots.
Do these till you get the profit desired.
If it comes down x pips, close the previous 0.5 lots bought at a break even or a little profit.
Etc.
Let it run till desired profit or break even.
  • #2
  • Sep 25, 2010 3:58pm Sep 25, 2010 3:58pm
What happened to the one lot you sold, is it still a floating loss while price is going up and you're buying these half lots?

Quote
If it comes down x pips, close the previous 0.5 lots bought at a break even or a little profit.
What if you buy and it goes down immediately without a chance to get out at break even?

Why not buy another full lot instead of a half lot? What does buying a half lot accomplish? Why even exit the first lot if you're planning to buy again?
  • #3
  • Sep 25, 2010 5:03pm Sep 25, 2010 5:03pm
Quoting eurotrash
What happened to the one lot you sold, is it still a floating loss while price is going up and you're buying these half lots?

yes, but if the price comes back to the initial B1,S1 you will be in profit

What if you buy and it goes down immediately without a chance to get out at break even?

You can place the order ahead with a sl to break even or sl to take small profit.

Why not buy another full lot instead of a half lot? What does buying a half lot accomplish? Why even...
After the first 0.5 buy if the price comes back down to the initial B 1 S1 you will be in profit 0.5.


I hope this image will help:
Attached Image (click to enlarge)
Click to Enlarge Name: IDEA1.png Size: 21 KB
  • #4
  • Sep 25, 2010 5:26pm Sep 25, 2010 5:26pm
This still doesn't make any sense.
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  • #5
  • Sep 25, 2010 5:57pm Sep 25, 2010 5:57pm
Quoting antonioforex
This still doesn't make any sense.
Sorry to confuse you.
Try to ask me some specific questions if you like.
It is simple to me!

Constin
  • #6
  • Last Post: Sep 25, 2010 8:21pm Sep 25, 2010 8:21pm
You will always be 0.5 lot net long/short against the trend. Which means that you will be margin called eventually if the trend is strong.

Or put another way, the red SELL trade in your picture is a floating loss bigger than your winners. Do the math.
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