Trade sizing
TheTwisted
Posts: 11 ✭
I am curious how people here do their trade sizing to reduce losses and increase profits. Is saw a post of lotzofbotz where he explain is briefly, but I would like to make it more concrete.
What I do now is look at the last five trades and base my percentage on that in general.
5 ITM: 5%
4 ITM: 5%%
3 ITM: 2.5%
2 ITM: 1.25%
1 ITM: 0.0625%
Any suggestions or advise?
What I do now is look at the last five trades and base my percentage on that in general.
5 ITM: 5%
4 ITM: 5%%
3 ITM: 2.5%
2 ITM: 1.25%
1 ITM: 0.0625%
Any suggestions or advise?
Comments
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How do you determine your trade sizing? I would like to set some rules for me so I can stick to them and don't waste half my bankroll on a bad day.
My idea here I don't see as martingale, because I scale down when I lose, instead of scaling up.
The idea is that I have a default trade size (in this case 5%), but when I'm losing, e.g. my ITM is below 60% in the last 5 trades, I am sizing down my trade sizes. -
The only rule i have learn't while trading with optiontrade is to make effective money management by taking calculated risks, martingale is somehow easier but it could lead blow off your entire account balance in the long run. Not quite sure if scalping is a good idea for binary trading but you can hedge other binary instruments against your loses.
