The idea:
If there is N/4 retracement, take partial profit and wait for reversion to average/mean of the losing side which would then be the side having more contracts and thus better for us to wait for reversion to close off both sides...
however if it reverts again by N/4 then we have no choice but to square off both sides (taking profit of remaining contracts and cutting loss on the losing side at the same time) but we already locked in bigger part of the profit earlier...
The whole point of starting a 2 sided trade and hedging at various stages instead of just adding positions in one acct is based on the assumption we have no idea where the market is going at any moment in time and it changes randomly all the time.
perhaps someone can suggest how to further optimise pyramiding (averaging up) on one sided winning acct...
also if anyone could briefly tell me the strength/weakness of such an approach...
Please proceed with programming the EA...and feel free to email me
to exchange ideas along the way ...
scalpmaster2006@yahoo.com.sg