IgazI wrote:
You have banked 26 pips.
Moving to 1/2 size is (2/3)x26 or a bank of 17.3 pips.
Your risk is anything up to 17.3 pips. . .you can continue to risk 4 pips until the 17.3 pips are depleted.
A 'loss', in your example, is -OMP and -4 pips:
We do not count having less money as a loss, we treat it as a 'paused' trade:
You had 17.3, you paused it after giving back 4, you are up 13.3 pips. press play!
After you remove risk then -OPM would cause you to start a new trade at 1/3 size.
Yes, thanks! I understand now.
It's a way to trade with less risk.
The tradeoff is that you make less profit.
Today I had:
40 pips @ 33%
-9 pips @ 50%
Price moved 31 pips when I was in a trade.
Would I have traded everything at full size I would have made 3,5x more profit.
With less profit however I had a bigger chance to catch a bigger move (just didn't happen today) with less risk.
I'm going to give it some experiments because now I had trades in the 33% and the 50% category but none in the 100% category.
The more trades you do in the smaller tiers, the bigger the gap with an all 100% approach becomes.
It gives me a lot to think about.
Nice... thx IgazI!
