Maybe this is my holygrail of money management in Trading forex. Lets elaborate
We tried out with Martingle even thinking that was the HG of trading forex. We know the gigantum risk of it being going the other wary round and busting the account in no time. But as long as the Fund in the balance is comfortable and the lot you make per trade is small its OK. Until you saw trades that went into the 7th sequence and still loss and you bust your account. Maybe it for the day of 10% of your balance but that is not good enough. But at least it set up the "what if" scenario for Paroli.
Now the nitty gritty of Paroli
What you hope for is to make success trade 4 in a row.
If you fail after the 1st trial (the 2nd trade)you loose 1 lot. If you loose in the 2nd, 3rd or 4th you loose nothing (except for the spread).
If you succeeded till the 4th trade your earn a gigantic 22 lot.
Meaning that you can afford to loose 22 times after the 1st trade and still break even at the end of the day if you only have 1 four continuous winning trade.
Holy smoke this facts is correct.
So what if like the Marti system you have a target of 10% win or loose a day. Upon reaching that you stop for the day and wait for the next day. Wouldnt that be good ?
The Paroli system is 1,2,3,6 Whats important what is the value of 1 lot.
But remember in a trading day you must have losses so that should decide how far off to your 10% target which by itself is what i want for a month.
