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Old 01-24-2007, 10:08 AM
alassio alassio is offline
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Using progressions to recover from losses

I am using fibo lot sizes with max 6 trades with 5 pips spacing for a t/p of 20 and a s/l of 50. This gives me a high percentage (70%) of successfull trades for EURUSD on M15 charts.

Now my observation is that stop loss is triggered rarely (but costly), but there is practically never a series of losses. This situation is good for using a progression scheme to manage lot size for quick recovery of loser trades.

I am now experimenting with the following scheme (variant of inverse Dahl progression):
- Start with 1x fibo lots per trade
- When there is a loser (stop loss triggered), continue with the following progression (advancing with every winner, restarting with a loser):
1,5,5,3,3,2,2,1.5,1.5,1
- This progression scheme tries to capitalize on the statistical observation that a loser is rarely followed by another loser, but it takes some time until we get hit again.

Regards, Rico
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