"You are long from your stop loss, not from your entry" -MightyOne If you like your stop then you'll love your entry, it is as simple as that.
Where do you place a stop loss? behind 'pointy places'. . . pick one.
Here the ranges on this 4-minute chart are 5 pips and 1/3 size gives me a wallet-stop of 15 pips:
there are two choices:
- enter at 1/3 size with a 15 pip stop
- enter at 1/2 size with a 10 pip stop
Once you pick your stop location you can enter at any price between your stop and the 0% retracement.
Adding is no different:
whether I add from 2 to 3 lots, 3 to 4, or 4 to 6, that is about a 66% ret between the current stop location and the add price. . .
do you like that stop location? that is the only thing that really matters.
Similarly, you can take profit and reduce your space by 1/3 to reenter with a larger lot size.
With this style of trading, you are trying to maximize profit potential within the confines of risk and are not as concerned with minimizing initial risk.
Again, you can think of trading as buying and selling pointy places:
if you get a pointy place for a good price then it's worth a trade.

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