The most important aspect of Forex trading is not a taking, profit but How to rescue a losing position. we read the lot about profitable trading systems , strategies, technique and formulas. The material about rescuing the position is relatively less available, though there is some good work is available on this part of Forex trading too.
The very time when the trader enters into the trade position all initiative is the shift to market. After trade entry trade has only one choice that is the time of closing the position, either he put some stop loss/take profit order or manage the position manually. It depends upon one's trading plan. we will discuss what we will do if after all homework and trading plan a position is going against our expected direction.

There are two main reasons for losing position i.e wrongly timed entry or entry against the trend. It is important to understand the trend of the currency pair for the time frame which you are trading for, A simple rule of thumb is traded with the major trend direction. There is the high risk of more loss during the rescue of wrong trend direction entries so it is batter to take the initial loss on that type of entries. so we will discuss rescue wrongly timed entries.
The bellow FIG show EUR/USD 4H chart,t the trend direction is downside and a possible short entry is proved to be profitable entry but what will happen with the traders enter the trade when price was at red arrow area, After entry, they must think that something is wrong and they are underwater in this type of situation one does not know how high, the retracement goes. so he has to either close the position in loss or goes for rescue process.

This concept is not new and many traders use this concept for rescue their positions and also for adding in the winning position. We will discuss in the rescue part of this concept.
Let assume we have 1000$ account with 1:100 leverage, for trading . Using average true range and pip value concept of my last month article we calculate that EUR/USD 1 pip value for the mini lot that is 1$. Daily ATR of EUR/USD is 92 if we want to risk 10% of our total capital, that will be 100$ .So as we did not risk all 10% in one entry we will divide it into 10 parts i.e 10$ so according to that calculation our first trade entry will be 10x100(leverage)= 1000$ which is equal to 1 micro lot .

we enter 1 micro lot at 2nd red arrow area and the market goes against us , we know the trend is in our entry direction so, at this point, we will shift into rescue mode.for rescue we will choose first resistance point, in this case, the green lines are indicating the areas where we can find resistance so we have to wait till price move up to that area. Till the price reach resistance area range. Market moves 70 pips against us which is equal to 7$ or 0.7% loss.At this point, we will short 3 micro lot.Now we have total 4 micro lots, which are equal to 0.4$ per pip move if the price moves toward the trend direction again from this point as in this case, We need 17.5 pips for break even.
When the price reaches this level either we can close 3 micro lots and left remaining 1 micro lot on the market or close all 4 micro lots and looking for another setup.

The opposite is also possible the market still moves upside , in this case, we will lose 0.4 per 1 pip move, remember we have 100$ risk tolerance we already lose 7$ so we left 93$ at this point we will look for another possible resistance area let suppose it is 30 pips above from green line and price move up to that area as shown in fig bellow
now we are19$ loss as we have 4 micro lot position and 81$ risk limit left. we will add 5 micro lots at the 2nd green line to making total 9 micro lots short trade. now we need 21 pips move downside for break even in worst case scenario if the market still moves aginst us, we will exit the trade at our risk limit i.e 10% of total capital.

The rescue process is the vital part of Forex trading .Managing losing position need careful calculation. Snowballing is a useful method for both rescue and adding in the position winning.
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