Basic Forex Strategy Final Part
Management in the size of positions
As this system is enough exact there can be effective enough approach use, like “Martingale” described. The doubling of a position after each losing transaction can appear quite reasonable. However, always adhere to a rule of 2 % – don’t risk more than 2 % of the account in any separate transaction, establishing corresponding restrictions on the sizes of positions. Escalating of positive transactions also can improve general productivity of your trade.
Place the warrants of an input on one or two points above/more low basic level. It will warrant that the price has really crossed basic level.
Versions of strategies.
There are numerous methods which will allow you to trade by a principle of the given system which will correspond thus to your style. Many traders prefer to lean at decision making against opening price – to go to the long party if the price moves on a quantity of points above it or to the short party if the price moves below it. Some traders prefer to adhere to this system only within hours of the greatest market activity warranting necessary variability. You can use other basic levels, like a middle point and other areas of support and resistance. Here I have described the simple trading idea checked up by time constructed on change of the price. Now you can develop own trading system on its basis.
This strategy can be difficult for application during the moments of an exit of news or other periods of fast change of market prices. During these periods some brokers, can expand spreads that will lead not absolutely to exact execution of your warrants or there can be complexities with execution of requests at the conclusion of transactions manually. Thus, you can’t receive the best point of an input for the given short-term system. One of approaches which can be effective in this situation, consists in waiting closings of the bar crossing key area for the purpose of an input at opening of the subsequent bar. In this case, you can lose some points, but avoid excessive losses and hassle.
I have described to you simple enough strategy which traders can successfully use. The version of the given strategy actually has been offered me by my friend who traded before in an exchange hall. Using various parameters and risk management tools, you can transform it into efficient trading system. I recommend trading on it only on currency pair EUR/USD as other steams have too big thorns and wide spread which eat profit. Personally I in the trade use numerous strategies, like this. The report on application of similar strategy is lower delivered. However, keep in mind that the last data doesn’t warrant the future results.
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