💡 Martingale Layer 💡
Martingale layering is an entry technique, best used to manage your risk.
For starters, you have to choose the right lot sizes and know how much you are willing to risk for each trade. (Advisable 1% of your account).
So let's say you have $200 equity in your account. Pick 0.10 lot as it is between low and mid risk.
Risk management formula
$200 Capital
High risk = 0.40 lot
Mid risk = 0.20 lot
Low risk = 0.02 lot
Once you enter a trade, (there will be future publications on how to enter a trade) the mindset has to be to fulfil your 0.10 lots by layering.
So first, enter the smallest lot of 0.01 or 0.02.
When the price is floating negative (let's say 5 to 10 pips) from the open/entry price, add the layers (another entry, same direction) and increase the total lots from the small one you entered initially. (0.02 or 0.03)
When and if the price floats further in the range of negative 20 pips from the open/entry price, add to your positions to fulfil the total of 0.10 lots by entering the final layer with a bigger lot size of around 0.07 or 0.05 lots.
Note:
Only layer TWICE to avoid over layering.
If you hit SL, your losses are minimised when compared to entering the market with 0.10 lots in your first entry.
If you're profiting, your profits will be much bigger compared to if you were to enter the market with one trade of 0.10 lot as your first entry.
Warning: If there is a significant trend change you could lose all your trades.
Thanks
TrainFx
Started FX in 2021.
A beginner daily learning and willing to teach what he knows on FX.
Martingale layering is an entry technique, best used to manage your risk.
For starters, you have to choose the right lot sizes and know how much you are willing to risk for each trade. (Advisable 1% of your account).
So let's say you have $200 equity in your account. Pick 0.10 lot as it is between low and mid risk.
Risk management formula
$200 Capital
High risk = 0.40 lot
Mid risk = 0.20 lot
Low risk = 0.02 lot
Once you enter a trade, (there will be future publications on how to enter a trade) the mindset has to be to fulfil your 0.10 lots by layering.
So first, enter the smallest lot of 0.01 or 0.02.
When the price is floating negative (let's say 5 to 10 pips) from the open/entry price, add the layers (another entry, same direction) and increase the total lots from the small one you entered initially. (0.02 or 0.03)
When and if the price floats further in the range of negative 20 pips from the open/entry price, add to your positions to fulfil the total of 0.10 lots by entering the final layer with a bigger lot size of around 0.07 or 0.05 lots.
Note:
Only layer TWICE to avoid over layering.
If you hit SL, your losses are minimised when compared to entering the market with 0.10 lots in your first entry.
If you're profiting, your profits will be much bigger compared to if you were to enter the market with one trade of 0.10 lot as your first entry.
Warning: If there is a significant trend change you could lose all your trades.
Thanks
TrainFx
Started FX in 2021.
A beginner daily learning and willing to teach what he knows on FX.