Hi there,
I totally understand what you’re saying and that is exactly what my money management strategy will be trying to accomplish. However, the only minor detail in all that is getting the 20 pips per day consistently which is not as easy as it seems it should be. :eek:
Why? Well from what I’ve experienced just in demo there’s a lot of little psychologies going on in ones mind that need to be addressed first.
Even when you think an entry setup with it’s confirmation is perfect, it can still go against. So then you try again but this time it’s got a double motivation…make up the pips you lost and make the 20 pips you need…and that emotional factor seems to work against.
Then there’s the “WOW…that win was great and I liked the feeling so let’s do it again today instead of tomorrow”…and for some reason it goes against so then we gotta try and make it up or feel lousy until tomorrow.
Then there’s the “I missed yesterday cause I was busy with life so I need to do 2 today” and, well, maybe it works, maybe it doesn’t.
Not to mention there’s the “I’m not sure this trade is going to reach 20 pips but it’s at 10 so let’s exit with some profit”. Or “this looks like it could go more so let’s wait” and then it reverses on you totally.
Finally there’s the stoploss factor which says “the setup is perfect but maybe I need to give it just a little more room” and you blow your risk management.
There are more but that’s a few.
What is working now is just to take it trade by trade, accept that there will be some losses, and not count the pip quota one needs per day, week etc. However, when my balance does reach those 1K milestones, then I do increase the lot size and I believe it will work out the same but in it’s own good time.