Great way to increase your earnings via Fibonacci Multiplications
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Thread: Great way to increase your earnings via Fibonacci Multiplications

  1. #1
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    Great way to increase your earnings via Fibonacci Multiplications

    hello traders,
    I have a good way that i always used to reduce the lose using Fibonacci multiplication.
    first for those whose don't know about this type of multiplication you enter the first trade with lot 1 and the next with lot 2,3.5.8.13.21 and so on.

    Now how I use this way to earn.
    lets say i have a trading system that gave me a buy signal and i will never close it before a sell signal then I enter the first BUY order with lot 1 from 1.1110, with a take profit of 30 pips but the price goes down for 20 pips and i get a sell signal then i don't close the buy one but I will open a sell position with a lot of 2 from level 1.1090 now the price started to go back again and after 25 pips I get a Buy signal then i open a buy position of 3 lots from level 1.1115 and with take profit of 30 pips too.

    Now I get the take profit level hits at 1.1145, now you will see that you have 2 buy positions
    lot1 from 1.1110 closed at 1.1145 earned 35 pips
    lot3 from 1.1115 closed at 1.1145 earned 30pips*3=90 pips
    total earnings of 125 pips

    and one sell position

    lot2 from 1.1090 closed at 1.1145 lost 55 pips*2=110 pips

    Now the total earnings will be 125-110=15 pips

    let's see what will happens if we closed all the orders with stop loss level without using this method.

    first order lost 20 pips
    second one lost 25 pips
    third order won 30 pips

    total of -15 pips and keep in mind that in the second way you opened a 3 lots and you will earn a rebates of 3 lots only
    but with Fibonacci you will open a 1+2+3=6 lots which mean you will get a 15 pips earnings and also a rebate for 6 lots too.

    just try it and ask me if you have any questions.

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  2. #2
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    Bro, if we use multiple orders then we need to care for the spread because it take important place to calculate our result here. Lets say we trade with 10 order and spread 2 pips then we need to spend totally : 10 * 2 = 20 pips. Surely, result need more than 20 pips to make a profitable here.

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    well this is right if you make the calculation again then it will be also winning as when i said 30 pips as a take profit I mean 30 pips plus spread too then you will earn 90+35
    and you will lose 55 pips +2 pips spread = 57 pips*2 lot = 114 then the total will be still +11 pips and this if you just earned 30 pips and will increase if you earn more.

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    I would like to give opinion on your strategy. First, we need a huge margin to get started because by multiple lot. Second, to make the plans of 30 pips profit necessary trending up or down by at least one correction. We may get caught new placed buy or sell when the price is corrected. Third, when the market sideways so 3-4 times a potential lost with multiple, correct?

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    Quote Originally Posted by wanahito View Post
    I would like to give opinion on your strategy. First, we need a huge margin to get started because by multiple lot. Second, to make the plans of 30 pips profit necessary trending up or down by at least one correction. We may get caught new placed buy or sell when the price is corrected. Third, when the market sideways so 3-4 times a potential lost with multiple, correct?
    I think the answer is yes, bro. In this method, sideway market is not suitable and it will become a disaster for us. So, i advice to avoid sideway market by wait and see. Usually sideway market will have a range there, and we need to wait till the price breakout the range to take action.

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    Wow ! Looks great. We can get rebates and because our lot is more then the first and second trade, we would have earned doubled and loss would be very low too. And plus we can also get rebates of all the lots opened. And it could be verry very profitable too. I will look into this.

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    No! this strategy does not seem to be good especially because you will pay too much spread and still not be certain if price is moving up or down. so after paying so much spread, what if the price decides to go up after you doubled your lot and sold it means that your loss will be double your profit. I think this strategy is too risky.

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  8. #8
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    It seems that you have shared a fantastic strategy. I am using rebates service and earn profits whenever i do a trade no matter i loose a trade or win that trade.
    So i think that yes, we can get good money even when we loose or be in profits because our lots are higher than the previous one so one trade can recover previous losses. But this should only be used in volatile pairs like eurjpy , usdjpy , gbpjpy etc.

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  9. #9
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    For the scalping strategies it is better to use rebates feature which is provided by roboforex too. I checked the rebate terms, and it can accumulated with a month. With the multiples orders then it can increase the rebates sum and save our money from spending too much on spread.

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  10. #10
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    I am having doubts that if you use such a strategy to carry out your trades,you would bearly accomplish much success,it's very risky the fact that you just keep opening orders as the signal changes,one more thing is the issue of stop loss which is very important how would you manage the risk exposure if the market goes against your entry without reversing,and the fact that you'll keep increasing tour lot size as the signals change makes matters worst for your account.pleas its important your strategy includes risk management.

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