DislikedI'm about to test this system with a swing trader's methodology. In other words, instead of SL-10, TP-40 with GBPUSD, I am using the following for GBPUSD: SL-75, TP-150, with a semi-martingale position sizing. I not certain whether to begin with 0.1 lots or 1.0 lots. I typically will enter after the 3rd consecutive daily retracement.
WaltIgnored
Just a quick comment - I think you would need to be able to work out your lots sequence for this progression to run at least to the 10th level to ensure a reasonable success level (chance of failure is 1:44 if randomly entered with 10 level progression, compared to Dans original of 1:66 if you were to trade it randomly...and of course the same odds apply if you trade both these progressions yourself with exactly the same entry method).
I assume you will be taking the initial trade in the direction of the primary trend after the three days of retracement. And your testing of this entry method gives you a greater than 50% success rate when traded with an SL of 75 and a TP of 150.
If this is the case then this type of structured entry method would considerably improve your trading odds as opposed to a random entry.
Note: One thought on these larger 'swing' size progression sequences - at least you won't have the high stress levels associated with tight SL levels and the price action "burning" through 4 or 5 levels quickly. So this type of swing progression sequence trading can be much better from a pyscological perspective.
Keep us posted on results.
Tim