Trading Method with Conditional Lots
This is my approach to using different lot sizes for different market conditions.
IMPORTANT NOTE:
This method does not work with currency crosses. I only use it for indices, commodities, metals, etc.
Anything but currency.
index:
Support and Resistance (Bari) (Fractal Levels)
Rainbow MMA_07
average range
Conditional lot:
We use 3 different levels for batches.
These values serve as weights
min = 1
Medium = minimum value * 1.5
Maximum value=medium*1.5
They are both %50 higher than their previous levels
So if your minimum lot size is 0.04, your medium lot size is 0.06, and your maximum lot size is 0.09
Trading rules:
The recommended TF is 5 minutes, but you can trade any TF you want. I personally prefer 5 minutes
frame.
We are always open for 5 minute TF and the following second TF chart.
So if you want to trade 5 minute TF, you also need 30 minute TF.
If you trade for 15 minutes then you need another 1 hour for the second chart etc...
From now on I will always use 5 minutes as my trading TF. You can replace this TF with your own TF
Preferred trading TF.
Batch rules:
Long: Price is above the rainbow on both timeframes, lot size = max
Price on either time frame is below the rainbow line, while price on the other time frame is above the rainbow line
TF, lot size = medium
Price is below the rainbow line on both timeframes, lot size = minimum
Short: Price is below the rainbow on both timeframes, lot size = max
Price on either time frame is below the rainbow line, while price on the other time frame is above the rainbow line
TF, lot size = medium
Price is above rainbow on both timeframes, lot size = minimum
IMPORTANT NOTE: When the day range approaches the level of the average range multiple display
Indicators, we always use the minimum lot size because there is not much room on the day.
Entry and exit (open from London to closed in New York)
When the price breaks the resistance line (1 pip + spread) we enter the long position using the lot size
rule. Stop loss at the support line (-1 point).
When the price is below the support line (1 pip) we go short and use lot size
rule. Stop loss resistance line (+1 pip + spread).
We set the take profit level for multiple points in the average range to 50%.
When the support line in a long trade moves in our favor, we enter a better stop loss.
When the resistance line in a short trade moves in our favor, we enter a better stop loss.
IMPORTANT NOTE:
This method does not work with currency crosses. I only use it for indices, commodities, metals, etc.
Anything but currency.
index:
Support and Resistance (Bari) (Fractal Levels)
Rainbow MMA_07
average range
Conditional lot:
We use 3 different levels for batches.
These values serve as weights
min = 1
Medium = minimum value * 1.5
Maximum value=medium*1.5
They are both %50 higher than their previous levels
So if your minimum lot size is 0.04, your medium lot size is 0.06, and your maximum lot size is 0.09
Trading rules:
The recommended TF is 5 minutes, but you can trade any TF you want. I personally prefer 5 minutes
frame.
We are always open for 5 minute TF and the following second TF chart.
So if you want to trade 5 minute TF, you also need 30 minute TF.
If you trade for 15 minutes then you need another 1 hour for the second chart etc...
From now on I will always use 5 minutes as my trading TF. You can replace this TF with your own TF
Preferred trading TF.
Batch rules:
Long: Price is above the rainbow on both timeframes, lot size = max
Price on either time frame is below the rainbow line, while price on the other time frame is above the rainbow line
TF, lot size = medium
Price is below the rainbow line on both timeframes, lot size = minimum
Short: Price is below the rainbow on both timeframes, lot size = max
Price on either time frame is below the rainbow line, while price on the other time frame is above the rainbow line
TF, lot size = medium
Price is above rainbow on both timeframes, lot size = minimum
IMPORTANT NOTE: When the day range approaches the level of the average range multiple display
Indicators, we always use the minimum lot size because there is not much room on the day.
Entry and exit (open from London to closed in New York)
When the price breaks the resistance line (1 pip + spread) we enter the long position using the lot size
rule. Stop loss at the support line (-1 point).
When the price is below the support line (1 pip) we go short and use lot size
rule. Stop loss resistance line (+1 pip + spread).
We set the take profit level for multiple points in the average range to 50%.
When the support line in a long trade moves in our favor, we enter a better stop loss.
When the resistance line in a short trade moves in our favor, we enter a better stop loss.
Attachment to original post (3)
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