Thread: Risk management protocols

The point is if you do understand the market and how it will react to a figure you are far less likely to encounter nuisance noise over a figure due to the large volumes going your direction. So you can put a lot more on without (much) risk of large losses.

Would agree entry stop straddle strategy is really rather foolish...

That's been my point pretty much this whole time, hasn't it? If you can understand how a figure is going to move a market, and you can get a decent price, then hit it with everything you've got. In my experience, that's a big if, and you get too many people whining when they sell a bearish figure and their market carries on regardless - at the end of the day, it's going to do what it wants to do.

SL,

I'm personally a big fan of the 'build into the day' idea. I often start the day on small size, and after banking a few tics start swinging for homers on bigger size.
If I start to see my day's profit get eaten away too much I will scale back the size until I am back to 1 lot and start all over again.
I've found on the days that I've got my eye in, I will well and truly make up for (and exceed) any profit I have forfeited on previous days.

Not for everyone of course, but works for me. Further, it is impossible for me to land 100k days unless I am swinging my full clip, so more regularly I can do this with out running the risk of being stopped out after two bad trades the better.