Dislikedwhatfx, your idea will be interesting if there are too many 4-entry losses. in my testing: TP 50 pips........generally the entries were 30 pips apart on average, so on a 2-entry trade I made 50 pips on the 2nd entry and 20 pips on the 1st entry. in other words: you close out at a loss on the next entry of 30 pips. price goes up and you make 50-30 = 20 pips. if price goes up after triggering the next entry, I can still make a profit on the entry before that one. and my profit would be 50 + 20 = 70 pips. a big fat difference in my backtest were the...Ignored
i think you folks are missing my point. if the trades dont go your way i.e. all four positions lose, then you will have a huge compounded losss of 1:1:3:6.
your comment above assumes that one of the positions will go into profit. but what if it doesnt ? closing each position out when entering a new one will prevent youyr losses compounding. that is what i meant.
can you illustrate with a few trades and chart examples your way of trading this method and what would happen if only the 3rd and 4th positions go into profit , and what would happen if all 4 positions lose.
then we can be clear as to the point i was making.