I’ve been playing around with different strategies on my demo accounts, and I’ve been hedging USDCHF against EURUSD (modified Hedging). I then had a idea … why not take profits on the pair which goes positive once you get about 10% of your total account, then either rebuy the pair or allow some movement before reentering the market.
Unfortunately, the pair (EURUSD) has continued to drop, and since I did not put a stop on the order, since I was “kind of” hedging, it’s in the hole over $3000.
Now, on one hand, I am in the hole $3000 on a trade, but on the other hand, I took a $5k demo account and turned it into $10k within 3 weeks. I am probably at $10.5k right now, but that is not counting the $3.5k I am in the hole.
I guess my system works great in a non-trending market. If it conitnues to oscillate up and down, I can rake in the profits. I seem to feel the pain if I reenter the market during a high point. I am wondering when I will ever be able to cash out?
Any ideas how to improve this system?