TF = 4 hr
This work on 2 scenario
1. Price moving up and candle close above 20 emas candle is blue/long
2. Price moving down (seem like retracing) with short candle but still above the 20 emas line
Since this is a 4 hr it would be wasted or non productive if the price reverse and we wait for the it to cross the emas 20 line. Furthermore if the turn was steep it will take sometime for it go up again to reach its former peak which most probably the last buy trade which most probably still open.
Worser if its on 3X lot the dip would be troublesome and a potential wipe of previous accumulative profits.
Lets see the chart
Dashed blue line shows where the trade open. Crossing up of the emas 20. Also closes all sell trade before.
The TP is still at 10pips. Paroli seq is 1,2,3 meaning that profit is doubled if the seq is complete. Losing at point 1 and 2 result in -1 while at 3 at 0. If complete its 6.
Like in covid2 there is no set SL. The closure will be a robot closure when the price cross down as you can see after the peak and many short candles down.
Covid 2 would react by BE if there is a chance if not it will crush down for a big gap loss. Worst if it was 3x lot.
From entry to highest peak its 263 pips and going down at 147.
Will be still in small profit if on the way down its either 1x or 2x lot. A 3x is critically impared whatever success it had achieved on the way up.
Thw whole ordeal was 32 candles or 128 hours or 5 days ! So it would be devastating to have waited for something to fall either loss or small profit.
So how can we change the fate ?
The mechanism of Covid3 is that if the trade is at losing say $30 it will open a sell trade (for this one). We can also decide that it would open opposite trade if the trade is 2x or 3x
The opposite trade will have different group number so that it would be trade differently. Have paroli maybe at 1,2 only. TP at 10pip. As so for closure, it will close trade (with loss) if the opposite buy trade losses is recovered or +20 for example.
If the trade go south than its for the best. It will cushion the Buy trade crush while preserving its existing accumulative profit.
Well lets wait for Monday to see if i can create it and the idea works.
