Hello everybody,
I got an idea…meaning it is not yet tested, but being more of a math person it works in my mind. From the time I basically started Forex trading, people always ask if there is a way to safly secure 5-10 pips per day. I can understand this question…hey do the math…if you can make 5-10 pips per day w/ 100% every day…you could have a rather large bank account. So, playing with this idea, I wanted to avoid the “hurts” of a quick profit system.
- small gain target = small stops, which usually get hit.
seems to be the major issue w/ the idea of 5-10 pips a day…well how about this for an idea (once again, NOT BEEN TESTED).
I use IBFX, using EUR/USD, which 99% of the time is a 2 pip spread
Open a buy order (doesnt matter on the price or trend) t/p is 5 pips.
Now, if the order goes the wrong way, you would open a sell order when the buy is at a -5. The sell order would need to be at a larger lot size. Then if there is another reversal, you open a 2nd buy at the same price as the orig, but at a higher lot than the sell…continue this till the profit = your target then close all orders…here is a small chart as to what I mean.
PRICE BUY SELL BUY SELL BUY
LOTS>> 0.01 0.04 0.1 0.28 0.67
1.5508 0.06 -0.52 0.6 -3.64 4.02
1.5507 0.05 -0.48 0.5 -3.36 3.35
1.5506 0.04 -0.44 0.4 -3.08 2.68
1.5505 0.03 -0.4 0.3 -2.8 2.01
1.5504 0.02 -0.36 0.2 -2.52 1.34
1.5503 0.01 -0.32 0.1 -2.24 0.67
1.5502 0 -0.28 0 -1.96 0
1.5501 -0.01 -0.24 -0.1 -1.68 -0.67
1.55 -0.02 -0.2 -0.2 -1.4 -1.34
1.5499 -0.03 -0.16 -0.3 -1.12 -2.01
1.5498 -0.04 -0.12 -0.4 -0.84 -2.68
1.5497 -0.05 -0.08 -0.5 -0.56 -3.35
1.5496 -0.06 -0.04 -0.6 -0.28 -4.02
1.5495 -0.07 0 -0.7 0 -4.69
1.5494 -0.08 0.04 -0.8 0.28 -5.36
1.5493 -0.09 0.08 -0.9 0.56 -6.03
1.5492 -0.1 0.12 -1 0.84 -6.7
1.5491 -0.11 0.16 -1.1 1.12 -7.37
1.549 -0.12 0.2 -1.2 1.4 -8.04
1.5489 -0.13 0.24 -1.3 1.68 -8.71
1.5488 -0.14 0.28 -1.4 1.96 -9.38
1.5489 -0.15 0.32 -1.5 2.24 -10.05
In this example, buys would open at 1.5500 / closed at 1.5507
sells would open at 1.5497 / closed at 1.5491
I would appericate any feedback on this little idea, or if anyone has tried it.
Thank you everybody, and good luck trading 