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Supersmall "Loss Recovery" trading
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Author:  europer [ Tue Sep 22, 2015 2:47 pm ]
Post subject:  Supersmall "Loss Recovery" trading
and btw I use ALR2 method..see text above or here again:
"BTW the context is with the ALR2 since we use less lots and to manage 30 trades simultaneously in a calculation with slippage and spread changing makes ALR not to be the right tool for this"
Author:  Fibotrend [ Wed Sep 23, 2015 7:10 am ]
Post subject:  Supersmall "Loss Recovery" trading
brcumming21 » Tue Sep 01, 2015 2:16 am wrote:Additional thoughts:

Instead of having a 1:1 Take profit to Recovery Zone ratio, let's change the ratio to 5:1 so a Take Profit of 25 pips and a recovery zone of 5 pips.
Hi there, sorry I'm trying to workout how you get your lot size sequence. If you have a recovery zone of 5 pips with 25 pips TP, the hedge should be only 20% bigger, why is it double in yours?

Cheers
Author:  europer [ Wed Sep 23, 2015 8:22 am ]
Post subject:  Supersmall "Loss Recovery" trading
Fibotrend » Wed Sep 23, 2015 8:10 am wrote:
brcumming21 » Tue Sep 01, 2015 2:16 am wrote:Additional thoughts:

Instead of having a 1:1 Take profit to Recovery Zone ratio, let's change the ratio to 5:1 so a Take Profit of 25 pips and a recovery zone of 5 pips.
Hi there, sorry I'm trying to workout how you get your lot size sequence. If you have a recovery zone of 5 pips with 25 pips TP, the hedge should be only 20% bigger, why is it double in yours?

Cheers
Hi, where do I say double? I cant find it :) please show me.
What I mean in general that the ration between recovery zone and exit zone should be never less then 1:1 but 1:>1 (1:bigger then 1). As I did understand your setup you had 1:2. Big recovery zone and a short exit zone, what is very expensive in increasing lot size
Cheers
Author:  Fibotrend [ Wed Sep 23, 2015 9:13 am ]
Post subject:  Supersmall "Loss Recovery" trading
europer » Wed Sep 23, 2015 8:22 am wrote:
Fibotrend » Wed Sep 23, 2015 8:10 am wrote:
brcumming21 » Tue Sep 01, 2015 2:16 am wrote:Additional thoughts:

Instead of having a 1:1 Take profit to Recovery Zone ratio, let's change the ratio to 5:1 so a Take Profit of 25 pips and a recovery zone of 5 pips.
Hi there, sorry I'm trying to workout how you get your lot size sequence. If you have a recovery zone of 5 pips with 25 pips TP, the hedge should be only 20% bigger, why is it double in yours?

Cheers
Hi, where do I say double? I cant find it :) please show me.
What I mean in general that the ration between recovery zone and exit zone should be never less then 1:1 but 1:>1 (1:bigger then 1). As I did understand your setup you had 1:2. Big recovery zone and a short exit zone, what is very expensive in increasing lot size
Cheers
I'm referring to brcumming21 spreadsheet post 3
Author:  brcumming21 [ Thu Sep 24, 2015 3:59 pm ]
Post subject:  Supersmall "Loss Recovery" trading
Fibotrend » Wed Sep 23, 2015 12:10 am wrote:
brcumming21 » Tue Sep 01, 2015 2:16 am wrote:Additional thoughts:

Instead of having a 1:1 Take profit to Recovery Zone ratio, let's change the ratio to 5:1 so a Take Profit of 25 pips and a recovery zone of 5 pips.
Hi there, sorry I'm trying to workout how you get your lot size sequence. If you have a recovery zone of 5 pips with 25 pips TP, the hedge should be only 20% bigger, why is it double in yours?

Cheers
I agree that the hedge should be only 20% bigger, and I think what you are seeing is that the initial trades in the lot sequence has to be 100% bigger because you can't use anything less than .01 lots and have to round up to .02 lots.

Example:

You start with .01 lots and your recovery zone is 5 pips with 25 pips TP. You would then multiply .01 * 1.2 to get .012 lots. But you can't have .012 lots so you have to round up to .02 lots.

Does that makes sense? If not please let me know.

Best Regards
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