Dislikedhi,tooslow。thank you very much。i like your trading style so much。but in the thread,you did not mention about moneymanagement。can you talk about it? i think your method maybe leads to a high win ratio and a low r:r.and there will be a potential risk to total account capital. so what do you think about it?Ignored
RISK = n% * ACCOUNT BALANCE
EXTREME = DAILY HIGH + SPREAD OR DAILY LOW - SPREAD
STOP LOSS = DISTANCE FROM ENTRY TO EXTREME
POSITION SIZE = RISK / STOP LOSS.
How much do you want to risk per trade?
Stop loss location is hod + spread and lod + spread.
Calculate the distance between entry and stop loss location.
Risk equals distance times position size.
Or position size equals risk divided by stop loss in pips.
That's all the money management there is to do.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
1