DislikedHello Skoda
Thanks for Your inputs.
Can You tell me what the typical spreads are at Ikon? At Saxo they are often 14-16 pips even on EURUSD.
And how do You decide on the position sizing? Are You allocating a certain percentage of Your capital for margin on any given trade, so that You can be in more than one trade at a time and enter when the setups present themselves?
Happy trading
TomasIgnored
Generally I divide my account into 4 equal portions so that I can have 4 trades going at once. I try and start with a strangle but like to have enough for 2 more positions left over. Often single leg trades (in and out in a few days) that are just too good to pass up come along throughout the month. With the single leg trades I prefer to sell an option rather than buy/sell spot forex as I am making money whether the price is going sideways, the way I expect or even a bit against me.
I could open more positions, but I like to keep things under control, even with 4 positions open and everything going against me the most margin I've had to put up is 30% of my account. I base my monthly profit figures on my total account value (as it's money I've set aside not to be used for anything else), but if I calculated my profits based on the margin I've actually put up the figures would be substantially higher.