Viktor Likhovidov wrote the article, The Folding Rule ....... it was published in the june 2001 edition of "technical analysis of stocks & commodities" magazine.....
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it's seldom good idea to trade with weekend spreads....
the average gbpusd 200 periods atr is about 29 pips.... a 0.01 lot, or 1/10 mini lot, trade would be worth just under 3$.... the average 12,5,3 zigzag leg for same sized trade is worth around 13$....
so a single trade, with a single full atr move in our direction, would give us in excess of 1% on a 200$ account.... maximum margin required for the single trade would be 26$....
a second sell stop, trailing with the 0.02 psar, could add a second trade..... maximum margin required would be 52 $....
that second trade would be unwise..... but the same can be said for trading forex.....
small accounts might do better trading the pairs with smallest margin required..... nzdusd is a good example..... gbpusd is not......h
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it's seldom good idea to trade with weekend spreads....
the average gbpusd 200 periods atr is about 29 pips.... a 0.01 lot, or 1/10 mini lot, trade would be worth just under 3$.... the average 12,5,3 zigzag leg for same sized trade is worth around 13$....
so a single trade, with a single full atr move in our direction, would give us in excess of 1% on a 200$ account.... maximum margin required for the single trade would be 26$....
a second sell stop, trailing with the 0.02 psar, could add a second trade..... maximum margin required would be 52 $....
that second trade would be unwise..... but the same can be said for trading forex.....
small accounts might do better trading the pairs with smallest margin required..... nzdusd is a good example..... gbpusd is not......h
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