xXx wrote:The question is not when I enter but when I am wrong.
Price has been closing lower so this is a low probability long trade:
a) define when you are wrong
b) oversize your space
c) enter the trade
If you are not wrong then you are right and if you are right then you keep buying.
That is the way I remembered
What about 40% rule of LIS/LOS?
That babypips post was a response to someone who was shorting into an uptrend.
We would do such a thing when there is a high TF wickdoll or we are re-positioning to re-enter with our last lot size.
Defining when you are wrong (LIS) will always be important, but the 40% rule just doesn't apply when initiating a trade at min. size (what we currently do).
Why? Because the % rule was there so that you would have enough space to inflate when REDUCING your position size (shedding)...but now you start at min so there is nothing to reduce.