About lot size and initial risk

[Tomi]

Hi fellows

I'm sure this subject has been discussed many times but I still would like to know how others are doing it today.

AIMS manual states that the lot size should be calculated based on AIMS levels. I'm using this approach at the moment. For a long time I have thought that it's causing a headache for me because when the AIMS box is very tight, you will get bigger lot size, even the slightest move will stop you out and eventually bigger loss. Of course you will get more easily 2:1, 3:1, x:1 trades. But for me I don't like this approach.

Based on journals I have a feeling that some of you are using fixed 10 pips when calculating initial SL. With this approach the losses really would be minimal. This approach is the one that really would fit to my brains.

Or am I understood everything wrong

What approaches you are using?

[Grant]

Hi Tomi,

I use 1% for 11 pips regardless of the aims size and i recalculate it every night after trading so that i'm not getting distracted during trading hours trying to work out a lot size.....

cheers
Grant

[Bettina]

Hi Tom,

I would adjust my position size to 3,5 or say 5 p, if I had sufficient experience with that and a reasonable win/loss ratio, but I don't calculate the position new for every trade, because also the original aims stop doesn't require more than 10, and seldom less than 8.
If the box is between 10 and 15 I either don't trade or set my SL above the red line.

Bettina

[immy]

Tomi

I always said in my journal and other discussions that my MM is done on fixed 10 pips, and more recently 7 pips. In the manual I say it should be based on AIMS boxes but in practice we have been doing a fixed 10 and 13 (grant) this is what we think the most optimum level as the best setups on M1 usually require something less than 10 pips. I will say again, MM , that is lot size should be calculated on a fixed pip valuse per time frame and for m1 EU we recommend anything between 7-13 pips!

cheers

[Tomi]

Thank you all of you for the answers. Basically my thoughts also as you have. I will make a tweak to the trading plan and use 10 pip fixed initial SL. It will be more natural approach for me and I have thought this for some time already. As we know, we should never hit 10 pip loss on M1.