adp » Thu May 07, 2015 7:00 am wrote:
Hi Dudest.
I'm interested in the emboldened text above. I am currently trading with larger lots (a lot size of somewhere between 1 and 4 for each trade, and then maybe adding one of two more as the trade continues to move in my direction), but I am just trying to evaluate if actually this is the best way forward. Let's say for a modest account size of around $5k.
I downloaded your script a while ago for stacking trades, and have been testing it in demo. I'm considering giving it a go, but using smaller lot sizes (between 0.10 and 1), as maybe this would provide a bit more protection if price moves against me, compared to just starting the trade with a larger lot size. I wonder how this would affect the level of profit too?
I'm curious.. what made you decide to change to the smaller lot sizes? and do you think stacking trades is a better idea generally than just starting a trade off with a larger lot size and then maybe adding to it manually as it progresses? (I don't usually leave trades unattended, so am able to check regularly throughout the day).
I have had my fair share of margin calls and huge losses, particularly when I started trading and took much bigger risks than I should have (without really understanding what I now understand about how the market is manipulated and how to trade with that knowledge), but I am now thinking that my trading style is radically different from the past, and that as a result, as long as I am continuing to learn and successfully putting it into practice (as much as possible), that entering into relatively low risk trades (in the pins on the RRT's, leg C of an 'ABC' etc) using higher lots has become much safer.
At the same time though I am aware that larger lots can equal large losses, and if something such as a spike were to occur, which it often does.. (I'm not using any kind of stop loss, which minimizes the risk here), or if I were to enter a wrong trade, which happens regularly too (although I am usually at the laptop ready to close the trade out quickly, minimizing damage), trading with an initial larger lot size could possibly have some downfalls... hence looking at stacking with lower lot sizes.
Thanks
