B&B Pattern. Trade setup with Buy Limit position (EP) at 25387 Stop Loss (SL) at 24531 and Take Profit (TP) at 26186.
Money Management
I have 22,800 USD in my portfolio. I can lose 10% of the port which is 2,280 USD. I will Trade MINI DOW JONES ($5)
Position Sizing
1 Tick = $5
1 Contract size need IM = $3,685 (I can open not more than $22,800 / $3,685 = 6.187 Cons)
It is 856 Tick from EP to SL, with 1 Con, I will lose 856 * $5 = $4,280
To lose 2,280 USD I need to open 2,280 / 4,280 = 0.53 Con
Then I will put 1 Contract
If I win, I will gain (26186 - 25387) * $5 * 1 Con = $3,995
P.S. I will not trade this position because stop loss is beyond my acceptable number
Money Management
I have 22,800 USD in my portfolio. I can lose 10% of the port which is 2,280 USD. I will Trade MINI DOW JONES ($5)
Position Sizing
1 Tick = $5
1 Contract size need IM = $3,685 (I can open not more than $22,800 / $3,685 = 6.187 Cons)
It is 856 Tick from EP to SL, with 1 Con, I will lose 856 * $5 = $4,280
To lose 2,280 USD I need to open 2,280 / 4,280 = 0.53 Con
Then I will put 1 Contract
If I win, I will gain (26186 - 25387) * $5 * 1 Con = $3,995
P.S. I will not trade this position because stop loss is beyond my acceptable number
Trade active:
EP at 25387
Trade closed: stop reached