jrtrading wrote:For a long time I have thought "why not make the initial space as tight as possible, because the smaller space the more lots, and the more lots the more profit".
As MO showed in his previous post, for a winning idea it does not really matter much what space you begin with as long as you keep adding. The initial space must thus be set with the losing ideas in mind, and be pretty wide.
This did not make sense to me until now. Thank you MO.
...the smaller space the more lots...
I use minimum size at the beginning of all trades:
$1.000, micro lots
$10.000, micro lots
$100.000, mini lots
$1.000.000, standard lots
$10.000.000, full lots
...the more lots the more profit...
True, but accumulation is gradual.
...it does not really matter much what space you begin with as long as you keep adding...
It is true that if price keeps moving away from an extreme that it doesn't matter where you entered as accumulation will
draw your stop closer to the the current price thus increasing your reward multiples.
I have my limits as you will soon see.
I ask if I can enter within 26 pips, then 39, etc.
If I project the lines to 26 above the extreme, etc, it is called a BOx or "position at a breakout" trade.
These are my personal numbers:
...with the losing ideas in mind...
Your ideas are winning ideas until they are not