1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

The Two-thirds Rule.

Discussion in 'General Forex Talk' started by ChrisEccles, May 7, 2009.

  1. ChrisEccles

    ChrisEccles Private, 1st Class

    Joined:
    Feb 13, 2009
    Messages:
    46
    Likes Received:
    0
    When to add to a winning position ?
    -
    Let's say you're trading the 10-min charts and trailing your SL by
    20 pips, and the trade is going in your favour.

    What I always do is wait until the gap between my SL and my entry
    is twice my SL, and then double my lots. This way, you're still stopped
    for the same profit, but the trade from then on is worth double what it
    was per pip. You can then do away with a limit target altogether and
    just watch it fly.

    You rarely encounter the opportunity more than twice in a trend (at least,
    not in the EUR pairs that I trade) but it's sweet when you do !

    -
    Chris
     

Share This Page