This strategy is long term. The two lots are used in order to maximize profits; since, more than one currency pairs may display the required characteristics for a potential trade. You may notice that there are not many trades and the holding period for a trade could be days even weeks. But most of all its profitable and I have been privately testing this strategy rigorously for 5 months (starting in February, 2010). In addition, please note that the max concurrent lots are 2 and sometimes the second lot is used to reinforce the first.
See signal Example
Lot1: open 2nd/June Buy signal (Eur/USD) open @ 1.2267 - Limit (1.2370) - Stop (1.1967)
Lets say by the 4th of June the (Eur/USD) was trading @ 1.2180
then based on my parameters I still believe that trade 1 is still good so to capitalize on this I would open a second trade.
Lot2: open 4th/June Buy Signal (Eur/USD) open @ 1.2180 - Limit (1.2370) - Stop (1.1880)
Pompeii - signal strategy
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2010
+16.2%
-5.6%
+1.2%
function drawChartD() {
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data.addColumn('date', 'Date');
data.addColumn('number', '$');
data.addColumn('string', 'title1');
data.addColumn('string', 'text1');
data.addRows([[new Date(, ,), , undefined, undefined]]);
var chart = new google.visualization.AnnotatedTimeLine(document.getElementById('chart_div'));
chart.draw(data, {displayAnnotations:true,allValuesSuffix:' $'});
}
Date Started
