New money management thinking - page 3
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BTW as most of you already know, MT5 cannot hedge so when you are 1 unit short and go two units long, you end up with 1 unit long. If you then go 3 short and you end up with 2 units short etc. Doesn't really matter though, it's the same result in the end.
Opening one unit then stop and reverse the one single unit position if it "fakes out" (over and over) is far better for risk of ruin than stop and reverse PLUS adding one unit to boot each time for reasons stated above. C7 breakout bot optionally does this. <link removed by moderator>. But so far, I have found that the best performing strategies use a stop loss in such a way where the trade is (usually) stopped out before it reaches the other side of the breakout channel anyways....
As the topic title is generic and about "new money management thinking", maybe this is a good start to think is such ideas like "opening trade as % of capital is best money management technic".
In this case, what you guys do, for instance, when you open such trades and lose most of them? Change the money management or change the strategy? Or any other solution?
If an unlikely amount of loss occurs (according to my testing and expectations) I am to go back to the strategy drawing board or at least re-optimize. No kind of money management can ever rescue a losing strategy in the long run.