aliassmith wrote:You really don't have to use all your space or
max out your leverage for that matter if you are
targeting 21% targets.
This is how I do it:
Let's say that you have $1000 and you are targeting a new balance of $1212
max size = ($212 / 88), $2.40
This brings the target within reach of the daily candle.
Min size = ($2.40 / 12), $0.20
This is large enough to reach your target quickly and small enough to not suffer
Max risk = ($0.20 * 40), 0.8%
35 is 0.7%, 30 is 0.6%, and so on.
You will usually enter within space so your risk will likely be 0.7% or better.
At max risk, every 5 losses is -4%.
If you double 3 times and increase by 50% 1 time then you are at max (the order doesn't matter).
Once you get to "max. size" you focus on riding the daily chart to your target; you still watch the
small charts but you are more inclined to let the trade run.
Once you have added zeros and are more worried about keeping what you have than making more
of it then drop your risk to 0.08%
Withdraw 88% of the profits every time you add a zero & there will be no black swans in your future.