Hello Mo,
Im back..gonna try this again. May not have it all yet, but please take a look and let me know if im on the right track?
For illustration purposes, I need to understand how to apply "space & lot sizing" to an actual trade I took.
The red line is my "close below, im out line"
The orange lines were my 4 entries, also marked with blue arrows (normally all 4 entries would be at the 1st position)
The green line is what my netposition was considering all 4 entries were same lot size.
So from my initial entry, my SL was 55 and after the 4th entry my net SL was 42.
Because im risking $30, my lot size at .10, I have 300 units of space?
When I entered my 2nd position of same lot size it would have my units of space to 150?
Because the 2nd entry was the same price, I drew my new space box from the same level and now only have 150 left?
I then entered the 3rd and 4th entry, same lot size, and space was reduced to 100 then 75?
I drew the boxes from the initial entry price is that correct?
So now im at $30 / .40 = 75 space but I only will use 42 of it for an exit if price closes beyond my red line.
I know at this point, im in sync with the lot size increases with this trade. Im just trying to understand the risk/space aspect of it 1st.
I normally go "balls to the wall" on all my trades and want to see if what your teachings are on space can reduce my risk and increase my "survivorability"
Im still trying to get beyond scalping.
doji
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