forexmoney wrote:I am sorry what are EIGHTS?
It is a method of managing position sizing and risk by spreading initial risk and OPM over a number of lines and then using some number of lines that is less than the total on the following trade.
If I start with 4 lines and I gain 1 then I know to increase my position size by 5/4 for the next trade or if I lose 1 then my new size is 3/4.
If +1 line is spread over 4 lines then I am reinvesting 25% of the profits for every line that I commit to a trade.
There are also formulas for line sizing and different strategies for small and large charts that can be found in the last few pages of the ideas thread.
I believe that the original SSG uses lines that are 10 pips apart and I have also seen 25 pip lines on other forums.
I am using M30 ATR32 * 3.2 for the weekly lines; using the highest ATR number in the recent history.