2: follow the direction of the breakout, and write plan before trade.
3: In trend following trade, buy or sell the ema62 bounce on 10s or 30s or 1 minutes chart.
4: In reverse trade, only the DIV setup with confirmation.
If any of these rules are broken, I need to write a reason for justification.
Some of the points I can think of, but not required for now:
* What would tell you the trade is wrong?
* Where might you think of adding to the trade?
* Rules that tell you when to take a break and reduce risk (trade size) in a slump
* Think of the what if scenario
Risk/Money management factors:
For example, a 30K USD account, with about 20 pips stop loss, a size of 50K lot, would create max los of 100$ per trade, that is 1/300 (0.33%) risk on each trade. So with 30K USD cap, u can get 1R at 100$, now the table:
1R CAP
100 30K
500 150K
1000 300K
Looks like one should be live on trading easily with a 300K account.
When to stop trading for the day: Loss of 5R
When to reduce size of trading: Loss of 15% (45R), with 1:50 leverage, the trading account only need to have 3K, the rest 27K can be in reserve account.
