MightyOne wrote:If you gain 4 EIGHTS then you also have 4 of any other macro (let that sink in!).
If you gain 4 EIGHTS and you double your size then you have 4 FOURS.
If you gain 12 FOURS and you double your size then you have 12 TWOS; re-doubling will give you 12 PIPS (ONES).
Since all type of macro pips have the same risk, if I gain 4 EIGHTS which is 4 x R, where R is initial risk,
I will also have gained 4 x R in any other macro.
The difference between the macros are the lot size.
If I lose 1 EIGHT I also lose
1 ONE (x pips over n lots)
1 TWOS (2x pips over n/2 lots)
1 FOURS (4x pips over n/4 lots)
1 SIXTEENS (16x pips over n/16 lots)
If I gain 1 EIGHT I also gain
1 ONE (x pips over n lots)
1 TWOS (2x pips over n/2 lots)
1 FOURS (4x pips over n/4 lots)
1 SIXTEENS (16x pips over n/16 lots)
Thus, if I gain 4 EIGHTS that is 4 *(8 x R @ n/8). If I double my size and keep the risk constant
That must be equal to 4 * (4 x R @ n/4), which is 4 FOURS.
Thus, if I gain 12 FOURS to my space that is 12*(4 x R @ n/4). If I double my size and keep the risk constant
That must be equal to 12*(2 x R @ n/2), which is 12 TWOS.
If I double that again that is 12*(1 x R @ n/1) which is 12 ONES...
.. or going back to 12 FOURS if I cut space in half rather than doubling.
The risk R is always constant