"Never" get stopped out?

[dmedraft]

Never is in quotes because you should never say never. But.........
I have been using a system that has not failed me yet.
1. Always trade with the trend of the larger time frames. This is very important.
2. Always use a stop but leave enough room for the trade to breath. The stop is for unusual movement like the recent CHF.
3. Enter the trade with small leverage. I am currently using a 10.
4. When trade reverses on you let it go until you get a reversal signal back in your direction. I use the supply and demand lines.
5. Enter another position using double the leverage. In my case a 20.
6. You only have to recover half your position to break even but so far my trades have gone positive.

I have recovered from negative 100 and more pips using this strategy.

Looking forward to some comments.

 

[downtrend]

How many months or years have passed using this strategy? It can eventually have a big losing trade. I had seen a trader that had a buy trade from EU 1.37xx and then he bought more positions after price has dropped from that level. As you can see now that price has never never gone back to that level from years

 

[fxstrategist]

How many times would you doble your bet if the prices keeps going against you?

 

[dmedraft]

Thanks

How many months or years have passed using this strategy? It can eventually have a big losing trade. I had seen a trader that had a buy trade from EU 1.37xx and then he bought more positions after price has dropped from that level. As you can see now that price has never never gone back to that level from years

Thanks for the insight. I see your point.

 

[fxstrategist]

Averaging down is not a sure way of never getting stopped out. you have to make sure the maket stays within a range, no matter how wide, but it should stay within that range, otherwise when the market breaks, the long term trends could last for months and you may get burnned trying to play the martingale game.

 

[stephane]

I've seen traders using that strategy. Properly done it is a trader's dream. The guy in question never had a stop loss triggered for two years. But unfortunately I never managed to learn it properly, and ended with big losses (hopefully I was learning it on demo).

 

[Kelben]

My last stop triggered(by manually closing a losing position) in April 2014 so I think this is actually one of the best strategies but you HAVE to know and understand your fundamentals too or you can get caught on the wrong side of the market!
The guy with the EUR/USD clearly did not hear or understand what the ECB was doing and planing to do or he would have closed his position or traded in the proper direction. Especially EUR/USD was very easy to judge after June/July 2014 and I would not have dreamed about going long since then but I made 1000s of Pips by shorting it until today.

I mean even if you don't know the general direction of the currency and don't care about fundamentals you might win a lot without a stop but the ONE time you are total wrong WILL wipe your account if you are stubborn...

 

[fxstrategist]

Very difficult to master and risky if you dont know what you are doing.