i want to share my short tactic for usd/cad. the usd/cad move in sideway up channel. so when it make new high, there is a chance that it will make correction. but the problem is that we do not know how far can it goes. therefore, i decide to apply grid trading into this with pyramiding money management.
1) the number in the chart show risk reward for each position.
2) traders should apply money management for example,
3) portfolio 100,000$, find the total $ you want to risk.
4) for example, 0.10% = 100$ >> separate to 4 units.
1) rr 1.25 = risk 10$ , show bearish candle or limit order?
2) rr 1.75 = risk 20$ , show bearish candle or limit order ?
3) rr 2.5 = risk 30$, show bearish candle or limit order ?
4) rr 4.2 = risk 40$ , show bearish candle or limit order ?
so when the price reach each zone u can either place limit order or wait for bearish signal
for example, if the price reach zone 1 and 2 but didnt show any signal. you can compound the risk $ to the zone 3 , 10$ plus 20$ plus 30$ = 60$ with rr 2.5 instead
1) the number in the chart show risk reward for each position.
2) traders should apply money management for example,
3) portfolio 100,000$, find the total $ you want to risk.
4) for example, 0.10% = 100$ >> separate to 4 units.
1) rr 1.25 = risk 10$ , show bearish candle or limit order?
2) rr 1.75 = risk 20$ , show bearish candle or limit order ?
3) rr 2.5 = risk 30$, show bearish candle or limit order ?
4) rr 4.2 = risk 40$ , show bearish candle or limit order ?
so when the price reach each zone u can either place limit order or wait for bearish signal
for example, if the price reach zone 1 and 2 but didnt show any signal. you can compound the risk $ to the zone 3 , 10$ plus 20$ plus 30$ = 60$ with rr 2.5 instead