bettlebox wrote:Can someone help through example of Space trade please? i hoping this help me see it and will help others.
I put up a chart of starting point, its weekly extreme on daily chart and lets say i start with 100 pips of space.
What is the first step?
STEP 1: Position: Simply place 00 behind a long term swing.
STEP 2: Lot Size: It is critical here that every lot size and resulting initial space makes perfect sense --->
You could: risk 10% of your account, have 250 space with 04, and enter short 20 lots all day long, but it probably doesn't make sense on a 4H chart esp if you look at a 04 lot entry.
After you decide how much space you need, so that even your smallest lot size makes perfect sense, the next step is to determine how much space you don't need (or won't need...at the moment).
To be safe, you should maintain a strong position.
If you are a greedy sob who is everything that is wrong in the world you will learn to trail your position behind the extremes.
There are some spots where you can triple your position on a BO of some level
(your position is still strong at this point, it is just based on new and higher extreme lows)
and risk 1.5% (+"their money") to make 41.5%+; sure you could play it safe, but that is no fun
I always manage to get people into trouble...
You are probably too conservative; so think about what you would do if you were balls to the walls aggressive and find some place to the right of middle.