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To Davit and/or MrAussieFX, I am still currently in process of reading the thread and taking notes. I have posted some of my notes on the thread before but since Davit doesn’t like spoon feeding I have not posted anymore since. “I have tons”. This is my first official question on the thread since I am trying to learn on my own and not disrupt the thread by asking obvious questions that I can find out on my own. This how ever hasn’t been 100% explained. I know that Davit doesn’t use a Hard Stop he decides how much % he wants to risk on a trade and then breaks it down and enters with partial lot size according to his overall risk. I was thinking of doing it doing it this way and wanted to ask you if this would be appropriate……….I was going to measure the pip distance from r/s 61 (first key zone) to either r/s 100, or r/s 138, or r/s 161. Depending on what the previous “strong” S/R levels have been in the past that held up……….and use that Pip Distance (trying to be around 200-300 pips) to calculate my Lot Size according to my Risk%……….then that way I know that I am using correct Risk% and I have enough room for price to go against me to those levels without reaching my SL $$ amount. I thought maybe doing it this way would allow me a more accurate SL using the Key Zones as markers for when to “get out”. I know that when price gets to the r/s 100 and above that price could be in a trend as long as Fundamentals Support the move. I am trying to avoid arbitrarily throwing out a $$ amount as my SL and not knowing where on the chart that SL would occur. Along the way I would “add” position at the Key Levels depending on PA. I hope this makes sense, I’m not the best at conveying my thoughts into words/text. Could you give me your opinion on my thoughts? Ty you for everything you have done while Davit is away taking care of family business. You’re doing a great job. You have BIG shoes to fill my friend! lol. Kudos!
EDIT: An examle would be this……..If I plan on breaking my Total Lots down in to 5 different smaller lots, I would start of by using 20% of my total lot size at R61, then if price goes against me to R78 (lets say that was 50 pips), then at R78, depending on PA I could “add” another 20% lot, then if price again went agaisnt me to R100 (another 50 pips) I again would add another 20% lot depending on PA. This would give me 3 open trades…1 of which is down 100 pips, the 2nd down 50 pips, and the 3rd was just entered so I would be down a total of 150 pips at this point. Then if price continued to go against me to R138 (another 50 pips) I could then add a 4th trade at 20% lot size…….a this point I would be down 250 pips and have 80% of my Total Lot size in play. I would have one more 20% lot size available to enter with at the R161 level (another 50 pips away from R138)……this would be a total of 500 pips against me and I would at that moment have my full 100% lot size in play…….but entering them all at key zones along the way, at the same time staying within my RISK % and my Total $$ amount that I wanted to Risk. I hope this makes sense………it makes sense in my head….LOL. Thanks for your time. I understand that practicing on Demo first will be the best thing for me to do in order to fully understand how to “enter” my trades and how to correctly calculate my Risk% and Lot Size according to my predetermined $$ amount I want to risk.
I’m not saying I would have a 500 pip SL, I was just using nice round numbers to keep things simple. Trade #1 would have traveled a total of 200 pips (4 levels of 50 pips), Trade #2 would have traveled a total of 150 pips (3 levels against me), Trade #3 would have traveled 100 pips (2 levels against me), and Trade 4 would have traveled 50 pips against me) and Trade #5 would have been placed at Level R161.
EDIT #2…….Maybe a visual will help you better understand me…….