If you cannot admit a stop loss, use zero-cut
Using overseas FX zero-cut
I trade by leveraging market insight and a averaging-down logic
And after increasing to some extent with a reverse martingale approach
I move funds to a deposit-like account, then restart
Trades that use zero-cut like this are also the essence of FX
We cannot dwell on niceties
Because what a trader should do is increase their actions
Whether this attracts the brokers’ disapproval is unclear,
but if there is a logic to increase, you have no choice but to use it
That is the mindset to have
Also
By trading with hedged positions
and closing out once overall profits are achieved
This is especially valuable with overseas high leverage
With high leverage, spreads are often wide
So adopt a trading logic that does not rely on stop losses
A stop-loss trading logic that is effective
is to target the third wave only
This is the Dow Theory relentlessly
Aiming for the bottom → top
This can be reproduced with moving averages + envelopes
Find the Dow Theory formation via moving averages and trade
Consider the envelope as a temporary top and bottom and take profits near touch
That’s all
Moving Average 25
Envelope 25, 0.4%
That suffices; this clearly defines temporary tops and bottoms per Dow Theory
In a trending market
MA forms the bottom, and the envelope the top
In a range market
Only around below the center of MA and envelope will be the top and bottom
Some try to reproduce this with Bollinger Bands, but it’s impossible
Because Bollinger Bands contract
And since when they widen there is a risk of “failure,” it’s very hard to rely on
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