thepark wrote:this is starting to make sense...lets say you guys make 5 macros @sixteens risking 3macro @sixteens, do you drop down to risk 3 macro @eights to double your size or do you keep trading sixteens? why?
If I make 5 SIXTEEN pips then I have 5 of any other macro, even ONES, to do with as I wish.
If I want to make 12 pips per day then I size my trades to make 12 pips per week; this insures that there is no adverse daily move that is unrecoverable.
Over the course of the day the line spacing is narrowed and the number of active pairs is reduced to keep risk to a minimum while reaching for the daily goal.
Position sizing sets the speed at which %'s are made where as money management sets the value of each interval.
Why not just set a 6 or 8 pip stop and target 12 pips per day? Account destroying price spikes, that's why.