This will be the place I record down several cash management methods that I use to my trading account. I've a functioning trading platform (which will not be a part of the discussion here) and also the reason I am interested in getting this diary would be to see which money management functions best with my current trading egy.
Just for the sake of completeness of the experiment, I scalp.
For example, I read that Divergence (another poster in FF) transactions and withdraws frequently together with his account balance will return to $5000 (if I recall it correctly). Other traders, on the other hand, have this 1 percent or couple of% per trade practice (which I found it disturbingly annoying and not practical). Another huge majority decide it by risk to reward ratio.
While I do use stop losses, I really don't determine my losses from the dimensions of my account. What I am trying to experiment is this:-
that I will begin by trading my normal lots. After I manage to pocket some pips, I shall then raise /double my lot for the upcoming transactions but on the strict condition that when the stop losses struck, I shall still maintain profit or break even.
By way of example,
1st commerce:I've pocketed 20pips, earning nett profit of $2,000.
2nd commerce: I've then identify it requires that a prevent loss of 5 pips, I'll set my stop loss at $1,500, leaving me with $500 if SL ever struck.
3rd exchange (if 2nd exchange TP hit): $2,000 $6,000 (TP 20pips). I'll have $8,000 of profit from today. So I will again recognize the SL I want and boost my lots for next commerce.
3rd exchange (if 2nd exchange SL hit): $500. Trade normally until particular threshold is accomplished.
4th, 5th....rinse and repeat.
But as I've said before, this is only because of my experimental and record functions. No TE will be connected as I'm not here to instruct anybody or share anything. Thus, don't expect to know every post.
Let's see how it rolls.