1) Thanks Mighty, yes, I understand the math. What I am wondering is whether I am doing things the most efficient way or not - since entries/adds are subjective, there is no way for me to backtest for expected return.
2) So, in this example, should I have been forcing adds? Yes, I could take a loss, but I could also take a hugely outsized profit.
3) Should I always be going for that big win?
4) It's easier to add when the waves are deeper and the move is slower, but I believe those are also the lower probability moves for generating momentum and big gains. What say you?
5) **I should restate the caveat that I'm asking for the purpose of learning the most efficient way to manually trade - you have already answered above for someone looking to make a living
1) This might change if we end up going the P&F route
2) You don't need pullbacks to add size, think of scaling in and out like adjusting a speed dial.
I would increase slightly along this macro path ---> 24, 20, 16, 12, 8, 6, 4, 3 (90 pips is 10% once you get to THREES)
increasing with the passage of the day &/or OPM.
3) I might go for a big pip gain if I have a stop at or better than any of the x's in the chart below.
4) It is always easy to add, you just push a button
The relevant questions are:
a) how fast did you make money
b) how fast are you going to lose money
5) scalp lines, resize, scalp lines, ... most of the time ...
some trades targeting monthly ranges & more daring trades on small charts when you have plenty of OPM.
If you see it different then do it differently.