GBP/JPY B 200.10 Limit 200.13 +3*
But also booked about 50 pips in accumulated interest as I held this position for about 4 weeks. Collected interest is my cushion to prevent stopping out of trades which don't bounce/sell off after entry. In this case, it was almost 700 pips before the trend reversed, but, it worked out, it has yet to NOT work out. Should I consider this a stroke of luck? Or is my system viable? Only time will give me the answer.
However, it seems all the systems which use this kind of "averaging in" methodology only go bust because of leverage. I read all the books on LTCM, and those guys have all regrouped after their catastrophic blowout using the same strategies. The only modification is their more reasonable use of leverage I intend to keep my leverage at no more than 20:1. On futures this is somewhat dangerous, but on Forex, especially mini lots, I think its somewhat conservative for the timeframe I am trading. I have attached a chart of the GBP/JPY trade so you can see the drawdown I took to cash out.
Note that the Daimyo didn't hit 100 yet, however when I am in such a large position, I want to take profits at the first indication that the trend may be reversing. So I exited when the upper BB was pierced.
