I'm trading daily breakout on E/J , and i try for months to define a dynamic MM to fit my signal expectancy
Statistics for E/J daily Breakout for the last 1000 daily bars:
1.Breakout High : 476 occurrences
7.98% of break will give between 0 &4 pips
5.46% of break will give between 5 & 10 pips
86.55% of break will give >11pips
My target is to capture 5 pips minimum and 10 pips if possible with as much of possible units
the goal is to capture maximum 10 pips but with large lots size
normally i enter in position and when at +5 pips i set BE +0 and take out 20%
at +10 pips i move BE at +5 and take out 50% and set final TP (30%) at +20 pips
Any thoughts on this method , does it make sense for you , or do you believe there is room to improve ?
thanks in advance for the time and efforts Mighty
Any advice on how i should
I prefer to reduce by 1/3 and then by 1/2 or increase by 1/3, 1/4, 1/5, repeat.
It is good that you are taking profit before moving your stop.
How much money do you want to make?
How many pips are available?
What should your position size be, based on the available pips, to reach your profit target?
When I was with ProAct Traders, our first trade of the day was for 55 pips...
let's say that you trade at $30 per pip and you want to make 30 x 10 dollars.
Your position size would then be (10/55)30 = $5.46/pip
$5.46 x 55 = $300.30
Maybe you see a couple of 14 pip movers: (10/14)30 = $21.43/pip
What I am saying is "trade TO GOALS not THROUGH GOALS"
Just about every trader says "I only want 10 pips...but if it goes ONE HUNDRED AND FOURTY "
No, if you think that it is going to move 140 pips then size your trade (or reduce) to (10/140)30
Say "I only want 10 pips, $30 x 10, $300", save your margin to make another $300 on something else.
But that is just my opinion, if you see it differently then do it differently.