I will tell you about a method that can significantly reduce losses, and even make an unprofitable system profitable. But still to use it, I would advise you to find or create a system in which the ratio of profitable and losing trades will be at least 50 to 50. Tell how to best use this technique with an example. Source: Yahoo. For example, you decide to buy gbpusd. The first deal was called Market 0.1 lot. Next exhibited a pending order for 20 points higher the current transaction. Lot 0.1. And put up a warrant for the 40 points higher than the first transaction in the same lot.
Take profit for all three items be placed on 20 puntktov from the last order established in the course of dvezheniya. Instead of stop loss exhibited pending order below the first position on 40 points. Lot size for him 0.4. You can change the lot size, but the ratio should ostovatsya, ie tiri warrant forwards must be installed with the same lot, and a warrant opposite direction twice as large lot compared to lotot two orders in the course of the movement. How does it work? For example the price went against you and you have a position open at the beginning of 0.1 lot, worked in the opposite order side and the price has gone further, once the price was 14 points loss from incorrectly open position overlap, all positions must be closed.
In rezultpte you in the general cases came to breakeven. Opened the second position, tightens the opposite position to the level of the first and the price turned, tripped a warrant in the opposite direction to move in 14 points to cover losses. Once the losses are covered, we close all positions and remove pending orders. Worked two additional orders at the direction of travel and the price is unfolded. Once sumarny income for the three open positions will be zero, we close all positions and delete pending orders in the opposite side. We have to avoid losses. The third case, the price has reached a take profit, we got 120 points profit on 0.1 lots. Important: If a warrant has worked in the opposite direction looking for a profit, cut off the losses and all. Step between the orders can be adapted to your system. To reverse the order necessarily stavte stop loss at the first order.