This is true and a breakeven stop would certainly be in place.
But all joking aside, this isn’t really a tough game to play once you’ve got the foundations. I unfortunately agree (because I never wanted to agree) that you do have to adapt every so often, one specific rigid approach will not work all the time. The markets do change over a number of years, the golden egg is awarded when you have a basket of approaches that fit all possible market cycles - and ofcourse knowing when to apply them.
My most valuable advice would be to find sections of the market where the following is happening…
- Market Crash (recession style - From aug 2008 for perhaps 8 months was the most extreme)
- Declining market (not a crash, but steady depreciation of a currency)
- Sideways movement (not easy to spot until after the event)
- A rallying market (not a boom, but steady appreciation of a currency)
- A boom ( a market relentlessly climbing, i’m yet to see that in a GBP pair)
If you can find an approach for those four or five combined with being able to identify when you are in that market specific cycle then that, in my view, is the holy grail - it’s bulletproof.
Well, that’s food for thought…
I’d personally combine point 2, 3 and 4 into a system as this is the ‘norm’. Then points 1 and 5 as they are opposites of the same extreme. If you can nail that, well, then you have a pretty solid foundation.