On trade EXIT and true COMPOUNDING:
1. DON’T use TP. the market is deaf and doesn’t listen to your hopes and prayers…
2. Start trading with small lot, and continously use fixed lot sizes.
3. Entries are according to CS, Tick-Volume & Volume.
4. Enter as close as possible to the Tick-Volume phase change (going from negative to positive).
5. As long as Tick-Volume is POSITIVE (above “0”) you stay in a LONG trade. Never mind the pullbacks, they are OPPORTUNITIES. The opposite is true for SHORT trades.
6. Initial SL is set at the CLOSE of previous swing – as indicated by a previous area of RED bars.
7. At each end of RED bars, with the first BLUE bar, you move your SL to tne next CLOSE of that area – AND enter another LONG trade with same initial Lot size.
8. … Repeat until stopped…
This is TRUE Compounding. Making the max out of a trend.
Here are 8 trades, vertical lines denote each entry, horizontal lines denote SL.
This one is more than 180 pips – but the revenue/profit is much, much higher. And can still continue…
BTW: there is an addition to this method, which makes it even more powerfull, more profitable, and still safe. But that’s more advanced and for another time.
G.
(results)
#1 0.1 x 14 pips
#2 0.1 x 23 pips + #1 0.1 x 14 pips
#3 0.1 x 12 pips + #2 0.1 x 23 pips + #1 0.1 x 14 pips
#4 0.1 x 11 pips + #3 0.1 x 12 pips + #2 0.1 x 23 pips + #1 0.1 x 14 pips
#5 0.1 x 7 pips + #4 0.1 x 11 pips + #3 0.1 x 12 pips + #2 0.1 x 23 pips + #1 0.1 x 14 pips
#6 0.1 x 12 pips + #5 0.1 x 7 pips + #4 0.1 x 11 pips + #3 0.1 x 12 pips + #2 0.1 x 23 pips + #1 0.1 x 14 pips
#7 0.1 x 0 pips + #6 0.1 x 12 pips + #5 0.1 x 7 pips + #4 0.1 x 11 pips + #3 0.1 x 12 pips + #2 0.1 x 23 pips + #1 0.1 x 14 pips
#8 0.1 x-10 pips + #7 0.1 x 0 pips + #6 0.1 x 12 pips + #5 0.1 x 7 pips + #4 0.1 x 11 pips + #3 0.1 x 12 pips + #2 0.1 x 23 pips + #1 0.1 x 14 pips
