I do this calculation.
It’s the simplest shit ever.
I trade 2 instruments. Cable, oil.
I can draw approx 7 (more but say 7) trades x week.
Cable -Avg sl is 25 p avg tgt is 40p, - why: a trade where I have to set a sl larger than that, is surely a wrong trade,
Oil - avg sl is 70, avg tp is 180
I rarely trade both, but happens
I have a max Dd allowed 5% on a day and total 10% did.
Equity 50k
what’s my trade size? Simple:
1lot for cable or 250$
3lots for oil or 210$
7 trades x 2 instruments is 14 trades.
14 x 230$ is 3220$
if I get all trades wrong, because I become an idiot, I still would have not reached the 10% max DD.
if I get everything right, I have approx 7k profits.
It’s the simplest shit ever.
I trade 2 instruments. Cable, oil.
I can draw approx 7 (more but say 7) trades x week.
Cable -Avg sl is 25 p avg tgt is 40p, - why: a trade where I have to set a sl larger than that, is surely a wrong trade,
Oil - avg sl is 70, avg tp is 180
I rarely trade both, but happens
I have a max Dd allowed 5% on a day and total 10% did.
Equity 50k
what’s my trade size? Simple:
1lot for cable or 250$
3lots for oil or 210$
7 trades x 2 instruments is 14 trades.
14 x 230$ is 3220$
if I get all trades wrong, because I become an idiot, I still would have not reached the 10% max DD.
if I get everything right, I have approx 7k profits.
Yesterday was the past