One of the key aspects of trading (and the most frustrating) is that it's impossible to predict the future. Since no trader can possess any absolute knowledge as to the future direction of price, one obvious option is to employ a “Martingale” strategy which keeps you increasing your bets until you eventually win. Unfortunately, since we don't know exactly how long any particular losing streak will last, and since most of us lack unlimited funds, this strategy is destined to fail, resulting in the total loss of our capital.
If we could work out exactly when that streak would end, of course, we would never lose, because we would know well in advance the precise amount of funds required to survive the streak and eventually produce a win, or a gain in capital. Even though the risk to reward ratio may be extremely low, especially on the very last bet, the trader would still come out on top.
Imagine if traders could enter the financial markets knowing exactly where the Martingale “limits” reside. Even if the price remains below the traders' entry level indefinitely, they would have the ability to coast through the losing streak to success.
I have adapted the high-risk and high-investment method of scale-trading to a safer, more powerful and adaptive tool: Vibratrading. Vibratrading is based on generating returns in the market from price oscillations, or vibrations. It is also implemented with reference to the concept of boundedness, which helps the trader or investor understand ...