- IMG_20170121_190348.jpg (195.58 KiB) Viewed 2496 times
Proving a point to myself that there is NO NEED for me to double prematurely (when I am aiming for further targets; going from 1stDouble⇉2ndDouble,
AND ESPECIALLY when going from 2ndDouble⇉3rdDouble.)
If I just want to scalp and take advantage of a 6-10pip burst of PA I feel is likely to happen, that is another thing (MAINLY when going from EntrySize⇉1stDouble,
sometimes when going from 1stDouble⇉2ndDouble.)
Breaking it down:
If I am at 2ndDouble, that's 12lev, a 100pip target from my line gets me 12%
-if I double 30pips later, I am at 3rdDouble (24lev),
my new AVG line to the same target is 85pips away, and gets me 20.4%.
-----that is a 70% increase in profit, instead of if i just left my trade at 12lev
-----also, my new AVG is 15pips away from the price i add-in at. (So this is a safer adding-in distance.)
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-if I double 10pips later, I am at 3rdDouble (24lev),
my new AVG line to the same target is 95pips away, and gets me 22.8%.
-----that is a 90% increase in profit, instead of if i just left my trade at 12lev
-----also, my new AVG is 5pips away from the price i add-in at. (So this is a riskier adding-in distance.)
This riskier adding-in distance IS NOT worth the additional 2.4% profit I would get from the move.
Therefore, having more patience before adding-in DOES NOT impact my profit potential.