Ok, I’m currently playing with this trading method by james. I understand the extrance and the take proft exit.
With his method he says to set stop loss at the bottom of the prior bar to the IB by 1-2 pip.
So, to figure my amount to trade per pip and only risking 1% of my account, I just figure how many pips it is between my entrance and my stop loss, and then divide 1% of my account by that many pips?
So assuming long: entrance - stoploss = # of pips stop loss.
…Risk %1 of account / # of pips = amount to trade on each pip.
Correct?