FB had over a 300 tick daily range
aliassmith wrote:FB range 230 ticks in first hour.
MightyOne wrote:aliassmith wrote:FB range 230 ticks in first hour.
I cross off the largest range and the two smallest ranges and then use the median range divided by 16.
If I were to go higher than SIXTEENS then I would use a number closer to the result.
You might do something similar for stocks...
aliassmith wrote:Where did you get these data points?
MightyOne wrote:aliassmith wrote:Where did you get these data points?
I use the last six weekly candles.
I expect that the current w1-range will fall within .625 to 1.375 the median range (10 to 22 lines of potential profit).
Daily ranges can end up anywhere from 20 to 62.5% of the weekly range & that is enough for 3+ lines per pair;
four charts, 12 lines.
So 10 to 22 lines of potential and you try to scalp out 3 lines from four charts. Daily risk is 4% on a total fubar day. Daily candles are the only place I would risk 4%.
aliassmith wrote:I was doing some risk evaluation to feel out my size vs. Risk.
So limiting my risk to $1000 on a single trade. I came up with the following.
Using sixteens and 3 lines for my risk level that puts me at about 2000 shares.