TheRumpledOne wrote:
Does make 1 line, mean you have exited the trade at 1 line? I think this is where language is tripping me up.
Yes.
If a line is $20 then +$20 is 1 line.
If I increase the value of a line to $30 then $30 is 1 line and my total lines are reduce to 2/3 (8 lines becomes 5.333):
now I might risk 2 lines of $30 with 3.333 lines behind it or (30/25)*3.333 or 4 lines of $25 if the trade is lost.
Knowing how many lines you usually require and how many lines you have behind a trade will allow you to evaluate the pros and cons of every trade: should I risk 2 or 3 of my 4 lines on the hourly, move up to the H4 where I can better control my losses, or move up to the D1 where I can micro manage the trade? There might not be a trade at the H4 level so your choice is then to increase your lines from 4 to 6, providing the 2 lines that you are going to be risking, and trade H1.
It seems complicated but it is not:
if you lose 4 lines then you strike out; how do you wish to proceed?