You are correct. I have gone back and reread that section and so I should have applied it earlier.
Pity the book is so hard to read, it has a great deal of value in it.
The correlated pairs issue is one I have looked at, and it does multiply my risk factor - however with the low account size and with initial risk values at 1-2% per trade it is one I’m currently willing to take. I intend to keep the same lot size as my account increases initially so as to get the risk factor down due to this, and only start to increase lot size once I have the funds available to do so.
The other item I have been considering in regards to this is that if a trade as dragged the stop-loss past the break even point is there an risk left in the trade? If this is the case then a correlated pair of trades with at least 1 with a locked in profit position is, to my mind no greater risk than the single new trade.
I would love to hear opinions on the above point.