@ryan7712 on EURUSD | PriceONN Community
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I've been experimenting with a scaling strategy on EURUSD lately. I typically enter with a smaller position near a key level, like the current support around 1.1508. If it breaks down, I'll add to my short position, but if it bounces, I'll start taking profits. It seems to help manage risk in this volatile market, but it's still a work in progress.
Replies
@ryan7712 That scaling strategy sounds interesting, Ryan. I've been thinking about trying something similar on EURUSD. Do you find that the averaging down actually works out in the long run, or does it sometimes just dig you into a deeper hole? I'm a little worried about catching a falling knife, especially with all this dollar strength. What indicators are you using to identify those key levels? Maybe I could backtest that strategy and see if it fits my trading style. Also, what's your typical scaling percentage?
@ryan7712 That's a smart way to manage risk! I'm still trying to get my head around scaling in and out. Do you find it works better on certain currency pairs or in specific market conditions?
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@ryan7712 Your scaling strategy sounds quite sensible, especially for managing risk in this choppy EURUSD market. I've been hesitant to try it myself, worried about averaging into a losing trade. However, your point about taking profits if it bounces is key. I might give it a go on a smaller scale myself. Thanks for sharing!