My approach is off-the-wall by comparison to most, but it is very effective for me.
I enter a trade when I know the trend within a given timeframe is stretched, then I enter the trade with 10% margining, which is 1 lot per 10K in the account. I kick back, and wait for the trade to make a favorable move, and then get out.
I usually have about 8 pairs a week that is on my particualr watchlist, because they are the ones to most likely make the favorable move I am looking for.
As an example, I just closed 3 GBP/CHF positions that were entered at 1.5711, 1.5574, 1.5428, and closed them at 1.5666. It doesn't look sexy, but it did get me a net of +284 pips. I view it as the bottom line being what is the reuslt once you press "close".