For those interested in my lot size and TP targets… it’s quite simple. With this ratio your risk is minimal…not saying there isn’t risk mind you. Obviously, the smaller the lot size the less risk.
I’m running 12 pairs (either on 1M or 5M - mostly 1M for me). Here are my current settings.
Acct size: $2k
Lot sizes are .01 for the initial position, .03 for the martingale.
Take profit target is $0.50 - this averages out (depending on the pair) to be about 5-7 pips needed for a TP on the initial position. If a martingale fires off I usually only need about 2 pips in the positive to TP and close both.
Averaging 150 trades a week (currently) that equals about $75 per week, roughly $300 per month
Acct size: $4k
Lot sizes are .01 for the initial position, .03 for the martingale.
Take profit target is $0.50
Averaging 150 trades a week (currently) that equals about $75 per week, roughly $300 per month
Acct size: $8k
Lot sizes are .02 for the initial position, .06 for the martingale.
Take profit target is $1.00
Averaging 150 trades a week (currently) that equals about $150 per week, roughly $600 per month
Acct size: $12k
Lot sizes are .03 for the initial position, .09 for the martingale.
Take profit target is $1.50
Averaging 150 trades a week (currently) that equals about $225 per week, roughly $900 per month
Acct size: $16k
Lot sizes are .04 for the initial position, .12 for the martingale.
Take profit target is $2.00
Averaging 150 trades a week (currently) that equals about $300 per week, roughly $1200 per month
Acct size: $24k
Lot sizes are .05 for the initial position, .15 for the martingale.
Take profit target is $2.50
Averaging 150 trades a week (currently) that equals about $375 per week, roughly $1500 per month
You get the idea. As the account increases to the next “level” you raise your lot sizes and TP targets. That way you risk ratio remains about the same as the account grows. Note: These are my numbers and this results in meeting my comfort level. Prior to these numbers I was running .01 and .03 for every $2K in the account…and though it was churning and burning making me over 10% per month, when the market decided to get testy I white-knuckled it for a month. I have moved my numbers back to a more comfortable level. If I only make 5-7% in a month…I’m perfectly happy with that.
Anyways, just thought I’d share since several folks have asked about the lot size/TP “schedule”.
As always, happy trading and good luck out there!
~knotthead