Assume you begin with $100 on a 1:100 leveraged account.
For whatever reason you think there's a trade that will gain you 500pips (if you're lucky), with a compounding approach and stacking orders on the way how would you place the orders? Would you pick every pullback or use a grid like approach? Further, what is the potential of earnings assuming that for .01 units around $16-$17 is required (assume you're compounding aggressively)?
Of course this will all depend on the drawdown foreseen/able to be endured/actually sustainable until margin call.
Essentially i'm trying to build a calculator or a bit of software to calculate the ideal stacking arrangement for a given trade.
As far as I can think right now, there are four factors: capacity for drawdown, starting balance, lot size and your target(pips distance from the first trade, followed by every subsequent trade).
For whatever reason you think there's a trade that will gain you 500pips (if you're lucky), with a compounding approach and stacking orders on the way how would you place the orders? Would you pick every pullback or use a grid like approach? Further, what is the potential of earnings assuming that for .01 units around $16-$17 is required (assume you're compounding aggressively)?
Of course this will all depend on the drawdown foreseen/able to be endured/actually sustainable until margin call.
Essentially i'm trying to build a calculator or a bit of software to calculate the ideal stacking arrangement for a given trade.
As far as I can think right now, there are four factors: capacity for drawdown, starting balance, lot size and your target(pips distance from the first trade, followed by every subsequent trade).