This one strategy can compound your gains. (Technical traders only!)

This is not financial advice!

As we know in technical analysis and trading we rely on price action, trend, an edge with high probability, statistics, pattern recognition and risk management in order to be successful. The beauty of having a strategy that puts you in a positive reward to risk ratio lies in your ability to compound your wins. To simply illustrate; assume you had to go up a flight of stairs, every step forward skips 3+ steps and every step backwards is just 1 step, eventually you’ll get to the top of the flight faster than you will to the bottom. That’s exactly how positive risk management and compounding works. If you had a strategy that makes you a minimum of 1:1.2 risk reward that’s enough to keep your portfolio in a positive ratio. There are many strategies that lead to a 1:3, 1:5+ risk reward ratio, the key is to master a few of em that can generate an edge with which you can compound on. Enter price reaction/fib trading system a system which has been tested, tried and true and gives an edge of at least 1:3 risk reward. It combines price action analysis for direction and Fibonacci levels for entries to optimize risk to reward. The beauty of compound interest is that A penny doubled for 30 days is over 1,000,000. For currency traders that’s 10–15 pips (consistently) to be able to compound your account exponentially!

I’ve put together a strategy report to loosely share how I apply my method of analysis/trading. It touches on building a case for your trade, the Pareto principle, fractals, Wyckoff theory applications and how they all tie into the strategy in question. If you’re interested check it out here when you have a moment.