I reenter with a larger position when the market suddenly goes against my initial position.
Using a very small initial entry, placing the larger position further away will give a better average price. The rarest form of price action in liquid FX pairs is one-way without a retrace. The key is keeping the initial position very small, so that a 3rd or 4th reentry would be considered a normal trade amount. Managing risk is keeping the lots small.
Ie; EurUsd short 0.02 lot @ 1.0505 (-$59), 0.04 lot @ 1.0690 (-$44), 0.08 lot @ 1.0950 (+$120).
