Application of money management system
Capital management in Forex trading is as important as other components of this activity. Maybe even more important than anything else. You can not understand anything in trading, open deals at random, but always be in profit. If you use a system to define the inputs, success is guaranteed.
Lucky7 trading strategy.
Before I go any further, I have to say it’s half a martingale. Lucky7 allows you to control your losses, not lose all your capital, which is typical for other martingale systems. The risk factor here is 1 to 2.
1) Based on our entry criteria, we open a transaction. It’s going to be the entrance to the sequence. For example, we buy EURUSD at 1.3500. Set the stoploss at 1.3490 and the takeprofit at 1.3550. That’s 10 points against 50.
2) If Take Profit is triggered, wait for a new input signal and continue.
3) If the Stop Loss is triggered, the next transaction shall be a sale. And the deal is opened at the market price immediately after the closing of the purchase by stop-loss. The parameters of stop and profit are set similarly to the first trade of 10 points against 50 points.
4) This bidding sequence continues whenever the Stop Loss is triggered. The sequence ends when takeprofit is achieved.
So, the main thing is to open a deal in the opposite direction at a loss.
This system works best during volatile times. That is, it is preferable to trade in the London and American sessions. During a narrow flat, there may be more losses than profit. In addition, no more than 5% of the deposit should be allocated to the sequence entry.