The Recovery System
I'm thinking out loud here and would like to know if I'm clear on this. Let's say I'm risking 1% kicking Recovery in at 100 pips.
At 100 pips underwater my risk is 1% , level 2 = 3%, level 3 = 6%, level 4 = 10%, pull the plug at level 5= 14%
So, if this thing runs it's course and New Zealand slips into the sea along with the NZ$ my usdnzd short will cost me 14% of my account starting with 1% risk profile.
I'm not doing this to scare myself or anyone else, the chances of pulling a plug at level 5 are extremely rare (right?) I want to be sure I understand the worst possible case scenario.
One other question would be lowering the jumps to 50 pips, how would this affect the process?
Many thanks! I'm loving this place!
Lee
I'm thinking out loud here and would like to know if I'm clear on this. Let's say I'm risking 1% kicking Recovery in at 100 pips.
At 100 pips underwater my risk is 1% , level 2 = 3%, level 3 = 6%, level 4 = 10%, pull the plug at level 5= 14%
So, if this thing runs it's course and New Zealand slips into the sea along with the NZ$ my usdnzd short will cost me 14% of my account starting with 1% risk profile.
I'm not doing this to scare myself or anyone else, the chances of pulling a plug at level 5 are extremely rare (right?) I want to be sure I understand the worst possible case scenario.
One other question would be lowering the jumps to 50 pips, how would this affect the process?
Many thanks! I'm loving this place!
Lee
"The more I practice the luckier I get." Gary Player