MightyOne wrote: You might trade at $8 per ONE (aka "micro pips")
or $8 per TWO
or $8 per FOUR
or $8 per EIGHT
or $8 per SIXTEEN,
but you are never trading for more than $8 per unit of movement.
Larger macros don't have larger stops, every macro in the above example has a -$40 max stop.
If I make 6 macros trading FOURS then I have +6 macros for trading TWOS or ONES or EIGHTS or SIXTEEN.
I would love to make $800 when price moves 100 pips, but I don't want to suddenly lose $400 if price spikes down 50 pips.
Why not add pips using EIGHTS, then add pips using FOURS, then TWOS, and finally ONES? The risk is 8 times smaller &
the reward will be there when I am ready to claim it.
Higher volatility, larger macros.
Lower volatility, smaller macros.
That is all that you really need to know...that and stacking is sexy
Thanks for your reply, MightyOne, much appreciated.
I don't understand it all so will have to digest what's written -
Thinking in terms of reward-to-risk ratios and scaling stops with volatility makes sense.
Stacking is the same as doubling I think.