The idea of 'space' is simple.
If you risk $1/pip over 100 pips then you are risking $100.
If you increase your size to $2/pip then your space must be reduced to 50 pips to equal $100; risk is the same.
If you increase your size to $4/pip then your space must be reduced to 25 pips to equal $100.
($1/$2) * 100 pips = 50 pips
($2/$4) * 50 pips = 25 pips.
Your stop moves closer to the current price to normalize risk; no matter how large your size gets your risk will
always be the same as your initial risk: $20/pip: ($4/$20) * 25 = 5, $20/pip with 5 pips of space, $20 * 5 = $100.
Space works in reverse as well: ($20/$5) * 5 = 20 pips, $5/pip and 20 space.
What does this mean? It means that if you were to lose all but 5 pips you could re-inflate your space & aggressively retaliate; you are down but you are not even close to being out.
Let's say that you are now trading at $5 & 20 space and you get out for -15 pips. ($5/$1) * 5 = 25 space, $1/pip and 25 pips of space.
Let's assume that you are trading at $1/pip and you have 25 space & you lose 20 pips this time. ($1/$0.20) * 5 = 25 space, $0.20/pip and 25 pips of space.
Lose all but your last 5 pips again and you still can trade $0.10/pip with a 10 pip stop.
You can only lose a trade if your space is COMPLETELY destroyed or you cannot reduce your position size.
The critical lesson is this: ACCUMULATION & PIP STORAGE (aka pips on 'ICE') ensures that each trade bleeds for miles before dying.
How do you put pips on 'ICE'? As you accumulate size your stop will move closer to the current price to normalize risk. When you reduce your position size, your space is going to 'inflate' past your stop loss ensuring that a profit is locked in (those 5 pips that we have been talking about).
Why not just lock in 5 pips? Because we do not move our stop without first increasing our position size...
...if you MOVE your stop then you believe that price can go further, if you believe that price can go further then you
should increase your position size, if you are unwilling to increase your position size then that means that you do not
believe that price can go further and your best bet is to just get out.
There is so much more to learn about 'Space Wars' but remember this:
You enter at ANY price WITHIN space, therefore space is easy!