Trading Rule Update
As you know I have mention on more than one occassion that I wish there was a way to reduce drawdown (DD) and for the longest I have looked to some form of correlation pair to offset DD. Yet, doing such based on how I compared different currencies (which could be completely wrong) would take away far too much of our profits and it was not stable. Meaning, in regards to profits not being stable is that in a correlation trade to help offset DD the profit levels vary from trade to trade and most important to me is that I have no way of knowing or controlling two currencies that may move against me. So, correlation trading to offset DD, such as Freedom Rocks does is a no go for me.
Even though I do like Freedom Rocks take on how one can earn interest as a long term investor.
A ligh bulb turned on today
and I wonder if I could enter a Buy-trade at 0.20 lots (mini) and a Sell-trade at 0.10 (half the size) where the Buy-side would always be in the direction I feel the market will go, could this be what I'm looking for? Huummm...
Then set entries at the close of a daily bar, then at -300, -700, -1500 for a total of having four open trades per trade signal. Where a move against the acct would trigger an exit of the Sell-side trade 0.10 at -300. Then add a new positon only if -300 occurs, and so on up to -1500.
That way I only lose half of -300 (-150) or half of -700 (-350), instead of the full amount. Which will allow one to keep the majority of their profits.
I will think this over some more but it looks good.
Titan
p.s. Just sharing my thoughts...