aliassmith wrote:BambinoFlex wrote:aliassmith wrote:
Really a risk box can be used for any trade type. Several types of risk and trade management can be used with it. They main thing is to use low leverage then then you catch your position add and normlize your risk each time. Also you must have an exit plan that pays you off enough. They are very important
If I have some time on my desktop Saturday or Sunday I'll see about posting some risk box ideas.
Thank you! I'll post what I mean as well. Since the premise of creating a box isn't hard to understand, but the placement and the whole add and normalize situation is where I get lost. Not because I want to copy the method, but because I want to understand the "why?" and how those "why's?" help plus their limitations.
Probably be easier for me to respond to your specific question then. The box is about limiting risk and increasing profitability. I'll wait for your example.
So we can start here. I drew the box at the bottom since that is what I would normally encounter. Is that correct way of drawing the box? Simply divide the the distance by the number of my choice?