Risk is based on the amount of equity you are willing to risk in any given trade. The number of lots traded is determined by your risk level. You can adjust your risk level based on much you win or lose on any given trade. Price can fluctuate as much as 20 to 30 ticks during a trade cycle. Do you have enough equity to place your stop low enough to endure the trade cycle?
Note
Trade Setup QuestionHow much equity am I willing to risk?
What is the trade cycle?
How many ticks will this trade potently fluctuate?
How many lots can I trade and stay within my risk level?
Do I have enough equity to make this trade?
How much can I realistically gain on this trade?
D Clemens
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
D Clemens
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.