DislikedI have also come to the conclusion that for this to work, price MUST move. And because you lose time, it can be fairly devastating to your trading career if the following were to happen: a currency is at 1 dollar. In 6 months time, it moves 1000 pips in your favor. Next 6 months, it moves back to 1 dollar. Next six months it moves 1000 pips in your favor. Next 6 months, it moves back to the start point. Two years have elapsed. Trading this method, no matter how you trade it, would not be profitable.Ignored
You'll have plenty of time and indications to take partial profits around the highs and lows of this movements. Depending on your trading style, you should be capturing at least a few thousand pips in closed profits per swing, mostly dependent on entry positioning and stacking aggressiveness. Sure, we would all want to save all our hard earned legs for that 10000-pip move in the next years, but that's just wishful thinking. By the way, I'm quoting Graeme almost literally here. The intermediate exits are needed for a reason, and the reason is that we don't know the future. Taking profits on part of your position makes sure you win either way. Price going forward? Fine, you have some legs to grow on that weekly/monthly trend that are well away from the price action and aren't likely to be stopped out unless the trend changes. Price reverses? Fine, you let these legs die, but at the time they are stopped out you'll have a stack of opposing positions that outweighs them by at least a few folds. 1000 pips is already a big enough move to profit.
