Do you want to know how it is possible to get an automated scalping strategy with a perfect stepping up equity line on other 100 trades like this one?
I believe risk management is key, because sometimes finding the perfect entry will not be enough.
The market is what it is, and nobody can predict with 100% accuracy how the price will behave, even with all the great indicators we got out there. With that in mind, we should come prepared that the price will go against you, and we should take advantage of it, because most of the time it will bounce back up.
This technique is especially useful in trading low timeframe also known as Scalping.
The idea is to lower the inital entry order size, and split the remaining order size progressively through the safety orders as the price goes against you. This will make the total trade average entry - or break even - at a lower place than if you were simply trading the initial entry. That means the take profit will also be lower, because we can now take profit from the total order size/volume.
What are the risks?
In the worst case scenario, which we know will happen at some point, the price does not go back up. It is important to know what are the risks so that we do no get liquidated or lose too much of our account.
Written by Cyato - 2021-01-24