Right, but there is one scenario where your risk isn't lowered by 50%, that's when you get your 2nd half in only to see price then turn bad. In this case, which won't be the majority of times, you'd ideally have lowered your stop losses to adjust for the 2nd entry and your max $ risk on the trade.Piper said:1st of all thanks for taking your time with your opinion.It's much appreciated.
That's a sound idea !This will cut the losses by 50%,and maybe lower the profits by 10% with the deep fib entries.Overall that's a very small price to pay to avoid half of my losses.Added to my trading plan and will utilize it from now!
Thank you Master Sensei 8)
The fiber setup nuked for -10 pips and about -0.2 % luckily with the opening gap my trade manager scaled out and moved the s/l. Really would have waited lol don't like the idea of weekend trades,the market triggered my limit on the NFP.
So it doesn't help in 100% of the cases, but in most cases it can help smooth out the old equity curve a bit.
Of course, it needs to fit with the strategy, some strategies just don't allow for it and you have to be 'all in' from the start. Scalping for instance, it's hard to "average up" when you're only going for 5 pips of profit. lol.
In any case, glad I could help.