Imagine that prior to entering the market you know beforehand the profit factor of similar situations. How would you manage your lot sizes based on this number?
For example:
trades similar to TRADE 1 have yielded a 1.2 pf
trades similar to TRADE 2 have yielded a 2.0 pf
How would you manage the lot sizes for the two different trades relative to each other?
The obvious thing to do is
TRADE 1 Lots = X*1.2
TRADE 2 Lots = X*2.0
but I am not sure if this is the smartest move.
For example:
trades similar to TRADE 1 have yielded a 1.2 pf
trades similar to TRADE 2 have yielded a 2.0 pf
How would you manage the lot sizes for the two different trades relative to each other?
The obvious thing to do is
TRADE 1 Lots = X*1.2
TRADE 2 Lots = X*2.0
but I am not sure if this is the smartest move.