I have moved my EUR/USD to 2 x BB range for TP; it's more volatile (for obvious reasons given the current turmoil). I can't help feeling that 5% risk per instrument, despite benefits of non-correlation, is far too big. Rule of thumb is 2% max per trade, and at the institutional level even that would be considered far too much. Beware!
Hi,Just trading a demo account this week while i move my funds from worldspreads to slm.
The risk is one of the reasons i am moving to slm. Worldspreads minimum bet takes my risk too high with a small account and this system.
Good afternoon all.
Having read through the thread, I think perhaps the most striking post for me was by Tomorton on 25th September in which he says: "ATR does appear to be significant. Of trades which closed during this session, hitting either target or stop, when ATR was 72 or more, 9 were winners and 1 a loser: when ATR was 71 or less, 3 were winners and 5 losers."
The rest of the post is equally informative - it's on Page 38 if you want to check back.
Does anyone stick to this principle? I know it's always tempting to trade, but we all like the odds to be stacked in our favour.
Has anyone come up with a similar formula for the currency pairs?
As I understood it, Steve, it was when the actual ATR figure on the FTSE was 71 and 72 respectively.
Correct me if I'm wrong Tomorton - or anyone else!