aliassmith wrote:MightyOne wrote:Instead of a flat x% I will risk x% per pip so that my space can be of any size.
$400+ accounts: 0.025%, 8x smaller than 2% over 10 pips
$1000+ accounts: 0.01%, 20x smaller
$5000+ accounts: 0.004%, 50x smaller
$10000+ accounts: 0.002%, 100x smaller.
The #1 rule to making money is that you do not lose it; the closer that you can get to risk free the better.
...but I don't trade for pennies!
Yes you do
But just as $0.02 doubled every day for 26 days is a large number, so are your pennies multiplied over a period of
time to a large number; $0.20/pip doubled once per day for 14 days becomes $3276/pip.
When I set a weekly loss limit of 0.5% it looks like this:
(0.5% / 0.002) / 50 space = 5 trades.
Yours might look like this:
(5% / 0.025) / 40 space = 5 trades...
& by 'trades' i mean the total destruction of 'space' (DoS Attack? lol)
Now you can see how when I lose 35 pips at 0.002%/pip, for a loss of 0.07%, I bust out and move on to the next trade; at this risk level, +39% is lost in hundreds of trades! Losing my money becomes a full time job
When your initial size is small then you can take big gambles because there is 'nothing' to lose and everything to accumulate.
But when your size becomes very large then you need to sober up and move with the larger charts.
Hopefully you can finally see that Space Wars is not pips, it is about conquest.
You say to double a $0.20/pip. When would you do that, When you accum. 35 pips or 50 pips?
No pips,
No entry.
ONLY position.
When you have accumulated enough to allow it
AND when current price dictates the pip value CAN be doubled.