@ mtc
My top was 540 pips after my first entry, and I still could add but with great risk.
The size was determined by trial and error. I am very conservative in terms of risks. As I wrote in my first post, my SL is not measured in pips but in % equity. It was never executed.
The leverage or trading line is calculated by the platform with the formulas here: http://www.dukascopy.com/swiss/engli...counts/margin/
And in the case of these last three trades, there was plenty of leverage left to add to the positions. The key is not to add to early.
Figure this. The price moved against you 100 pips. You added 1 lot at each 10 pips. So you added 11 lots. Your average price is 50 pips away from the market price, but your position size is 11 lots. What if, like on Monday, some comment pushes the market further 100 pips? Your average becomes 100 pips away from price, but the size of the position is 21 lots.
Now, you added 1 lot every 40 pips you had the same average but only 5 lots. Can the price go higher without ruining your equity? Yes, it can.
Mind this: the farther it goes to, the difficulty to recover rises. However, about this one in the room next week.
@ normtold
Yes I do. Not often though.
This is what I do. I hope that my answer helps.
My top was 540 pips after my first entry, and I still could add but with great risk.
The size was determined by trial and error. I am very conservative in terms of risks. As I wrote in my first post, my SL is not measured in pips but in % equity. It was never executed.
The leverage or trading line is calculated by the platform with the formulas here: http://www.dukascopy.com/swiss/engli...counts/margin/
And in the case of these last three trades, there was plenty of leverage left to add to the positions. The key is not to add to early.
Figure this. The price moved against you 100 pips. You added 1 lot at each 10 pips. So you added 11 lots. Your average price is 50 pips away from the market price, but your position size is 11 lots. What if, like on Monday, some comment pushes the market further 100 pips? Your average becomes 100 pips away from price, but the size of the position is 21 lots.
Now, you added 1 lot every 40 pips you had the same average but only 5 lots. Can the price go higher without ruining your equity? Yes, it can.
Mind this: the farther it goes to, the difficulty to recover rises. However, about this one in the room next week.
@ normtold
Yes I do. Not often though.
This is what I do. I hope that my answer helps.
If you're not part of the solution then you're part of the problem.