i was trying to upload a picture that can explain it all, but the rules here says that i can’t upload image as a new user.
so i will do my best to explain it. please be patient with me. if you know a way to upload image pls let me know, it is better for more clarifications.
1- first we need 3 buy/sell each 0.1
(start with buy/Sell wait for price to move up or down (where else?) 40 pips then place another Buy/Sell, again wait for price to move 40 pips above or below the two buy/sell. place Buy/Sell you can use pending orders. buy stop/sell stop-buy limit/sell limit)
2- now we have three Buy/Sell Positions, each with 40 pips gap.
Buy/Sell
40
Buy/Sell
40
Buy/Sell (price indicator is here now)
3- wait for the price to move 20 above or below the 3 Buy/Sell.
4- in both case the strategy will work the same.
5- let’s assume the price move 20 pips below the third Buy/Sell
6- place sell for 0.2 lot
7- close all sell with profit (+180)
8- close first buy with loss (-100)
9- current position (+80 - 80) Break Even
First Scenario
10- wait for the price to move up or down, if the price move up any numbers of pips, you’re always in Break Even position (you loss spreads). you can wait for the price to move down, but if it keeps moving up exit all positions and getaway with small loss i.e spread in this case am accepting it and call it (Break Even!!). and restart again (i have another solution for not to restart all over again but not for now)
Second Scenario
11- if the price moved down 20 pips place sell 0.1 (we are still in Break Even )
12- wait for the price to move up or down 20 pips- if it moved down
13- you will get total profit of 20 pips($) or any numbers of pips down all are profit
so far so good
worst case scenarios start from here: the strategy problems
1- from the last position we placed (sell 0.1) if the price moved up again 20 pips touching sell 0.2 position in this case you need to close sell 0.2 position make sure it is 0 loss.
2- now the price is on the closed sell 0.2 (the good news you’re still in Break Even:grinning:
3- now we have sell 0.1 and 2 buy positions, right
4- if price continue moving up (you’re still in break even) if it reached the first buy you will get profit of 40 pips (40$) all up movement are profits:grinning:
The main problem of the strategy:sob::
when we closed sell 0.2 and price moved down again towards sell 0.1 what we will do in this case, placing sell 0.2 again and the price may move up again we need to close it? and so on???
any ideas???
picture will speaks better but i couldn’t