My latest strategy - Mark VH
Here is what I have been doing the last 3 weeks with my very small account (because after 4 or 5 years, I still suck at this). But it has been fun.
Imagine a chart of the AUD/USD. Above and below the current price, place small limit buy orders at 15 pip increments (05, 20, 35, 50, 65, 80, 95). The take-profit is set for 15 pips on each limit buy order. Reset each order that takes profit.
Flipside. Imagine the chart of the EUR/USD. Above and below the current price, place small limit sell orders at 15 pip increments (05, 20, 35, 50, 65, 80, 95). The take-profit is set for 15 pips on each limit sell order. Reset each order that takes profit.
Now imagine for the moment, just the AUD/USD chart with all those little buy limit orders. If price climb steadily up, you are buying and cashing in every 15 pips. If price is choppy, you are collecting on dips and selling on peaks. However, if price steadily declines, you are accumulating positions and drawing down margin.
The EUR/USD sells are a kind of hedge, taking profits on the reverse moves. I do these two pairs because of the small spread and they often move together. I happen to do the AUD/USD long, since it gains interest. Keep the limit orders small. Occasionally liquidate position and reset orders above and below market.
Tripled the account in 3 weeks. I know that the alarm bells are going off in folks heads, because big gains could indicate disaster down the road. But we’re just talking dinner money. I want to find out just how it will succeed or fail spectacularly.
1:50 leverage. Say, with a $20 account, the orders are 100 units. Once it gets to $40, 200 units per limit order. Maybe less would work better.
Happy trading, everybody. Thanks for the great posts over the years.
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