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May 07, 2018, 03:03:12 AM |
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1. Average price up
The average price is known as the strategy of replenishing the order while winning. To be clear, once the first command is profitable, we will "add" the command so that the account grows faster.
Advantages
- Potential holes are small because the first command is not large. Only when the first command word we increase the volume.
- Especially with Trend Following systems such as Turtle Concept. Average price up will amplify the account. The longer the trend, the higher the profit.
Limit
- It is difficult to find an optimal and reasonable price for the next order. Moreover, once the price is reversed, the loss will be pretty fast if we hit the end. In order to deal with this problem, the first order should be for a large volume, the following command will gradually reduce the volume again. As such, the words of the first order are sufficient to cover the losses of all subsequent orders once the price reverses without committing the first order.
2. Average cost
This is contrary to the average price up because your order is opposite the direction you expect.
Advantages
- As mentioned above, you can eat bold after a short reversal. Price goes according to what you expect.
- Even when not in the right place. But if the price is reversed in the beginning direction, the later orders will save the previous orders.
Limit
- This method is often abused, especially new trader. The reason is that when they are losing money, they often have the mentality to trade more, one expects the market to rise, on the one hand want to find something to save money.
3. Martingale
Basically, after a loss, the trader will double the trading volume to compensate for the loss before taking the remaining words. If the second order is also a hole, there will be a third order with twice the volume of the second order, and so on until there is a statement.
Advantages
- All losses will be settled by a interest command.
Limit
- Your account is enough to be to the next command and each the same date as big or not? Đây là vấn đề về rủi ro ro. Go to long term, all trader will be over through a loss loss string. And only need to a block with the volume too large to be stoploss also enough to scan the Balance Bay in the account.
- If the trader has an own own fields and continue to the command must be applied that but apply the command of this command will be probably than be than than is over the upper point.
4. Anti – Martingale
In contrast to the Martingale,usual when the losses, traders are not doubled in volume. But when having interest is continuous, they will double the volume for the next trade. The thought behind this method is that after each win, we have free money (words) to cover losses for the next trade
Advantages
- Traders can eat thick with a sequence of interest.
Limit
- Only one loss is to wipe out all previous accomplishments. To improve this limit, the trader should be only half or 1.2 times shorter; 1.3 should not be double.
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