Originally posted by SmartTrader
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if we are in a retracement and you enter in the direction of the trend (i.e. USDJPY is up trend), no problem to do it as long as you entered close to the end of retracement or beginning (confirmation) of impulse. But you know better than us that a retracement can go down up to 200-300 pips without problem and even though there is a uptrend there is a high risk loss if you enter in the beginning of a retrace stage as the case with last trades. Of course, no problem if you size our position to absorve 200-300 pips DD within 5% risk because you estimated that possibility in advance - but the grid system in this case can left us with a 25% DD (and loss) with few pips retrace.
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