It has seen that the use of the precautionary network system
is very successful and very failing, during the few past years. So the failure
led unfortunately to discourage trader from taking advantages of this good
system. So as I found that the reasons of the failure are mainly due to
ignorance, greed, and impatience (the usual reason for the failure of trade).
In short, the precautionary network system uses the
following methodology. In order To begin to buy and sell currency, when the
price moves to a certain distance (Net leg) you start to liquidate the positive
leg and left the passive leg and you start to buy and sell again. Sooner or later,
the system will achieve positive results and you are liquidating the deals into
profits.
This is a brief summary of the course content for the
precautionary network system... The attraction of this system is considered
reasonable and therefore can also be programmed to not require extensive
control when using of exclusive entering commands.
Profits achieved when the price of apostasy 100%, 50 %, 33%
at different levels. It seems that this strategy supports the concept of Fibonacci.
The network system also depends on the nature of the transaction in trading in
side way 80 % of the time in the direction of 20 % of the time.
Risks if the price does not bounce continue s his trend. Network
system has not been able to achieve profits in a trending market - a breakpoint.
You should be aware of this. Therefore, you need strategies to reduce the
damage during these periods: -
1. I found that the
biggest mistake that traders commit by choosing too small of the net leg from
20 to 30 points. In fact, this is a recipe for disaster. The idea is to use
large amounts of network leg between 150 and 300 points. The effectiveness of
the matter is that at some the movement of some trends to Side stage. Usually I
use 300 points in the GBP 150 on the yen and the euro couple - dollar, for
example.
2. There is no rule
that says that the legs should be the same size. For that I can change the size
of the legs in the relevant markets to be the biggest trend. If I start with
150 points in the first leg, I raise it to 200 points of the second leg and the
third leg with 250 points. In this way, it achieve less loses when I make deals with the market trend.
3. In some cases it
may be desirable to increase the number of contracts with the trend for the
number of reverse bias in the case of a strong trend. Although you should be
aware of the need to have the same number of buy and sell transactions. All you
have to do is securing your status by precaution 100 % transparent.
4. This is the
largest and most important change I personally work in my network of trading
strategies. Always try to liquidate all positions in which the system archives
profits and when the price reaches the end of one leg of your network. By
setting these deals you will reduce the risk of losing contracts to provide
market trends. It will also provide you an opportunity to reassess market conditions.
5. Liquidation when
you start is one of your options. One of my strategies is liquidating all open centers in which access
to the third leg in my network position, and I restart that again. Experience
has taught me that this will cause short-term pain, but disappears very quickly
and soon I will forget it.
The traders who traded by using the network system , they
will see immediately the application of
the foregoing points in order to reduce
the risk of loss of the exponential and appear on the market with a strong
trend.
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