Hi Everybody,
For those of you who have read my DAX post on the Day Trading Blog will have seen me talk about when to use the 10% initial risk guideline. Well here is a good example of when to use it – when you are “against” the larger degree trend.
Here this “manual” DP sell on the 60min AUDUSD chart made a nice +3.6R Profit (ignoring slippage and commission), but it was against the larger degree 240min chart. When this happens or you are unsure of the larger degree pattern, then as soon as the trade exceeds the 10% initial risk level, move your protective stop to break-even. This means you are protected quicker....
Thanks
Steve
For those of you who have read my DAX post on the Day Trading Blog will have seen me talk about when to use the 10% initial risk guideline. Well here is a good example of when to use it – when you are “against” the larger degree trend.
Here this “manual” DP sell on the 60min AUDUSD chart made a nice +3.6R Profit (ignoring slippage and commission), but it was against the larger degree 240min chart. When this happens or you are unsure of the larger degree pattern, then as soon as the trade exceeds the 10% initial risk level, move your protective stop to break-even. This means you are protected quicker....
Thanks
Steve
