[el_duende]

This will work providing you have a huge huge amount of capital in your account to cover potential losses before you get the win.

In casinos the way of stopping this method of betting is by having a zero on roulette and/or by having table limits, but in forex I do not know of any limits. Possible limit? Could you have 64 trades open at the same time with a broker and get them all processed in time or 128 trades open, 256 etc?

Just for example we start a mini trade that costs $500 say using this method we can see how much money it will cost if there is a large drop in pips say due to terrorism.

eg if you are -100 pips in a trade you are now already spending $16000 for a 20 pip profit (This 20 pip profit will only be around $1/pip) spending $16,000 for a $20 profit!

1 - $500 0
2 - $1000 -20
4 - $2000 -40
8 - $4000 -60
16 - $8000 -80
32 - $16000 -100
64 - $32000 -120
128 - $64000 -140
256 - $128000 -160