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September 6, 2011

Adding more safety


What I often do, and recommend you consider as well is to pad
your pip ranges a little more. Often what I’ll do is I add/subtract
15 pips rather than just 10, or I will add 10 pips to the highs/lows
over the past 8 minutes, especially when there has been some
larger price movements. Widening your range lowers your risk
of having your trade entry triggered if it ends up being a dud.
Yes, doing this will cut a bit out of potential profits (usually an
extra 5 to 10 pips), but it dramatically lowers your potential for
losses. Remember, it’s better to make a little less on your profits
as it will be far compensated for the savings of losses.

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