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Replies to #5889 on FOREX TRADERS
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livin1492

12/28/06 9:31 PM

#5895 RE: ultimatepick #5889

It was a rough example.

I take the largest single move from the past 2 years (1500?) without interuption and divide that by 6. Then I determine how I would be able to survive that move. If there is a move of 900 pips lets say, would I be averaging every 250 pips at a 1-2-4-8 pace? nahh. Instead you use the technical system you trust and go straight to 4 or 8. This way when you get that retrace you need only go 1/4 of the way back to original entry to BE. Now, there are incredible moves that have happened over the past 15 years that would devestate an averaging system... that is for discretion to come in. I only hope to goodness I can recognize it when it happens.

Lets put it this way, my sub account which I use averaging in was against this current trend that occured. It has come out just fine. Obviously the simple trending system did a lot better ;).

1000 pips was an extreme. Yes, only trade interest positive. Probably best to stick to chf or jpy pairs. Also, use correlation to help get a tell on where the market might want to be going at a quick glance.