DislikedDoes anybody have any input with regards to the amount of capital you can put at risk with this strategy on any single trade.I have always believed that no more than 2.5% of your capital should be at risk on any 1 trade and I would just like to know if you guys find this to be true with this strategy also as i have not proparly backtested it so far.
I think that is a very personal thing. I myself risk only 0.5% of my equity as I donīt think that Iīm good enough right now, so I try to learn and just risk that amount. If you feel comfortable with risking 2.5% - go ahead. The strategy works, but you will get stopped out a lot. Most of the time with 0, sometime your SL is hit, before the market moves to the first TP. If you face that a couple times in a row, you would have large drawdowns by risking 2.5%.
Once I feel more comfortable with my own trading I might increase to 1%.
Hope I could help