Your Double in a Day cheat number 1
One of the restrictions when trading the Double in a Day Strategy is that the stops can be too small and restrictive for announcement straddles and other certain Double in a Day trades. This is certainly true given the brokers habit of increasing spreads during announcements.
Here is how one of our clients has overcome this problem by thinking “outside of the box”.
Use the DIAD Excel spread sheet.
- Create a strategy for a 100 pip run using very early top ups – say 30% and 40% and 50%
- The double the expected target and rebalance your strategy
- You will see that your stops have more than doubled.
This will make the chances of being stopped out less likely and once you have passed your original target, say at 110 pips, you can consider closing your entry deal and running with the remainder of the deals.
The Double in a Day trader has found that the increased success rate has more than made up for achieving slightly less than a 100% gain.