DislikedActually, I would appreciate some clarification on "lot allowance". Do you mean that you have a total lot allowance for each position - regardless of how many positions you already have open? Yes...Or do you mean that you have a total lot allowance for all your combined positions? No...but I do limit my TOTAL exposure using a percentage of my account at risk based on my own personal "level of comfort".
My previous post means that I am currently thinking that I should have a lot allowance for each position - but that I should also have a total lot allowance for all my combined positions. Could be lot allowance..OR..percentage of account at risk.
If you don't have a limit on the total number of lots for all your open positions, then let me ask you this hypothetical question: If you logged in one day and found that you had legitimate trade signals on every pair that you monitor, would you then proceed to open a trade on every single pair? Would the lot size on those trades be the same as if you only had a single trade open? This would 'never' happen, but there have been occasions when I felt the need to limit my number of open trades because I did not want to put too much of my account at risk. "Comfort level" again. So I pick the very best trades and pass on the others. But it's not unusual for me to have 7 or 8 trades open at the same time. However, when a trade moves far enough into profit for me to move my S/L to B/E, I will do so because from that point onward my account is no longer at risk and I can comfortably open additional trades.
I know that the "right" answer to this conundrum is different for every trader - the solution must fit your own risk tolerance. But I would find it very helpful to know how you or BeachBum would handle such a situation. I know from reading BB's posts in the Fozzy forum that he also monitors 19 pairs. So it seems as though the three of us are all monitoring a fairly large set of pairs for potential trade set-ups, so you must have run into this scenario before.Ignored
Unlike Peter, I don't have the 'cahones' to trade without stops...............
But I do like to use multiple lots; at least three, sometimes more, scaling out as the trade progressively moves into profit. Sometimes only one or two lots hit profit; sometimes the last one will run a very, very long time in my favor. HTH!