I believe proper stops and style of money management is something that can only be addressed by reviewing ones trades, and the way it progresses statistically. . Have you got a high win percentage, or high R, or quite low percent but a much higher R:R. All these are variables that decide how and what kind of money management is going to be suitable for ones trading system/style.Originally Posted by ;
By way of instance, if you have a high rate of hitting 20 pips per trade, and from that a reasonable amount ends up targeting 80-100 pips, then it seems sensible on trading together with your total alotted risk till 20 pips, and make profit. But on retraces or breakouts of the amount add incremental lots as long as position is going your way. Today its easier said than done, however I'v noticed that the more I can employ this, my losing trades are less in amount and my winning trades would be for more in sum, and thats due to not scaling out my position for runners. Since in systems in which you take partial profits, in the event of a loss, your loss is in complete lots, however your wins are in lots whose exposure is decreased it goes your way. I believe that the reverse of most trading systems/style would be helped by this.
Today the exact amount that needs to be risked or when is a good time to include lots or on what retraces or breakouts is a good idea to include rankings, thats an issue of price action and individual trading style. . But for my trading style, it has helped the bottom line hugely.