Hey there, fellow traders! Today, I want to dive into a strategy that might just help you navigate those tricky market waters. It’s all about opening positions in both directions to capitalize on trend movements.
How the Strategy Works
To kick things off, you’ll want to open at least one position in each direction. Start with two counter positions using minimal volumes. Typically, one of these will turn a profit while the other one takes a hit.
Taking Profits and Strengthening Positions
The winning position will be closed when it hits your Take Profit target, while the losing position is where the fun begins. You’ll want to bolster that losing position by adding lots at specific intervals. If the trend keeps moving in the same direction, keep strengthening that position. Remember, trends can reverse at any time!
Doubling Down to Recover Losses
Every time you strengthen your position, you’ll double the volume. This way, when the trend eventually reverses, that last losing position you closed at Take Profit should cover all your previous losses, hopefully leaving you with a nice profit!
Starting Capital
One thing to keep in mind is that your initial deposit needs to be hefty enough to support all these moves. For example, when trading USDCHF, the volume has fluctuated between 0.1 to 25.6, and since February, there have been nine strengthening steps taken four times against the trend. Ideally, you should have a starting deposit of $50,000 or more to withstand these fluctuations.
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