EagleTrader Forex Trader: How to use dual strategies to truly achieve “cut off losses and let profits run”

　　In the market, traders often face complex environments where trends and fluctuations alternate, and a single strategy is often difficult to adapt to changing market conditions. Dual Strategy
Principle) By dynamically adjusting the position cycle, capturing long-term profits in the trend, controlling short-term risks in the counter-trend, it has become the core method for professional traders to improve return stability. This article, EagleTrader
We will analyze the key points of the application of this strategy in detail from the aspects of logical construction, operation steps, etc., and hope to provide some help on your trading path.

　　Core logic of the dual strategy principle

　　The dual strategy principle is based on the following two core mechanisms:

　　1. Trend follow: long-term holdings of profitable positions

　　Logic: When the trading direction is consistent with the market trend (such as long positions in a long trend), amplify the profit space by extending the position time.

　　Verification tool:

　　• Trend indicators: 200-day moving average, MACD (judging the main trend direction).

　　• Volatility Tool: ATR (Average Real Amplitude) Sets a dynamic take-profit target.

　　2. Counter-trend hedging: short-term stop loss or reverse operation of loss positions

　　Logic: If the position diverges from the short-term fluctuations of the market (such as long positions encounter a pullback), it is necessary to quickly stop loss or short backhand to avoid the expansion of losses.

　　Verification tools:

　　• Oscillation indicators: RSI (overbought/oversold signal), Bollinger bands (price channel breakthrough).

　　• Event-driven: Changes in market sentiment before and after the release of key economic data.

　　This strategy conforms to the trading philosophy of “cutting losses and letting profits run”, and optimizes the risk-return ratio (Sharpe Ratio) by distinguishing trends from noise.

　　Operation steps of dual strategy

　Step 1: Trend confirmationRecognition and entry

　　Identify the main trend:

　　Confirm the long-term trend through the weekly chart MACD columnar line direction and the relationship between the price and the 200-day moving average (such as the price is above the moving average and the slope is up).

　　Entry signal:

　　Look for a pullback to the key support level (such as Fibonacci 38.2% retracement level) and RSI <40, establish a long-term long order.

　　Step 2: Dynamic management of long-term positions

　　Stop profit settings:

　　Set floating take-profit (such as above 3 times ATR) according to the ATR value to avoid closing the position too early.

　　Rules for increasing positions:

　　When the price breaks through the previous high and the trading volume increases, increase positions according to the pyramid ratio (such as 30% of the first position, and 20% of the position exceeding the breakthrough).

　　Step 3: Short-term operations of counter-trend positions

　　Stop loss trigger:

　　If the price falls below the daily support level (such as Fibonacci 61.8%) and the 1-hour chart RSI>70, close the long position immediately.

　　Reverse opening:

　　When the 4-hour chart forms a bearish engulfing pattern, backhand short (the position is 50% of the original long-term position), and the target is the previous low position.

　　Key principles of strategy implementation

　　1. Discipline separation:

　　Long-term and short-term positions need to be managed independently to avoid emotional interference.

　2. Data verification:

　　Historical backtests (such as EUR/USD data from 2010 to 2020) show that the winning rate of the dual strategy in the trend market is 58%, far exceeding the single strategy.

　3. Risk control:

　　The loss of a single transaction shall not exceed 2% of the total funds, the leverage of long-term positions is ≤5 times, and the short-term positions are ≤10 times.

　　The dual strategic principles combine trend tracking and counter-trend hedging, achieving a wonderful dynamic balance between risk and return. The core point is: long-term positions rely on macro trend analysis and high winning rate signals, make steady arrangements and pursue long-term generous returns; short-term operations cleverly capture the opportunities brought by market noise and achieve excess returns with flexible in-and-out rhythms.

　The key to the success of a dual strategy lies in strict implementationdiscipline and continuously optimize parameters to adapt to market changes. For traders who want to improve stability, this strategy is quite worth adopting. Of course, this also requires considering whether it is appropriate based on your own situation and trading habits.