{quote} hey emmanual and phx62, do you all have a good money management strategy for this on the daily? I was thinking put a trailing stop behind the each days candle and also look for PA reversal, TDI hooks, Recross of TDI for exit. How is the best way to use cavemanager on the daily? thank
Hi Ryan,
I don't have a good money management strategy but I have a tested and proven one which I use for many years.
It is combination of money management and entry and exit strategy for use in D chart position trading.
On Day charts position trading, we believe that each price swing will run between 3 to 8 candles, so we want to capture those swings moves on D charts.
- use position building when there is a trend reversal
- use multiple entries and multiple exits during the established trend
- use re-entry after intraday retracements / corrections / price pull back, etc.
- trailing stop is by 2-Day look back, i.e. I trail my trades using the previous 2 days - high/low of the price bars.
- do not use CaveManager becasue it does not manage multiple trades.
- use % risk model, for example,
a $50k account, risk 0.2% per position and with a 100pips initial SL, the trade position size is 0.1 std lot for pip value $10 per pip. Maximum build 5 positions at distance 50% and 75% ADR to full risk 1%.
- protect all open positions, then think of adding more positions using 50% and 75% ADR.
- exit profitable positions, then re-enter when there is retracements seen in lower TF like H1.
- look at the average price for all open positions.
- always have a stop loss for all open positions.
regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
{image} EDT: Setup not valid, entry abandoned. {image}
