The support forum is built with (1) a Q&A format for common trading queries received from wannabe and experienced traders, and (2) a standard forum for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
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Al says that is we normally risk 20 pips, but a trades price action stop is 40 pips away from entry , we should lower our position size to half of what we normally trade
Yes!
what if a trades' price action stop loss is 10 pips away from entry, and we normally risk 20 pips, should we increase our position size, or keep it the same and just tighten stop loss to the proper price action stop loss?
The less moving parts the less mistakes so easier to stick with your normal position size most of the time. Regarding stop-loss placement, you can't tighten it if you use a PA stop and, if you use a money stop, by reducing it you are reducing your probability as well.
Al says that is we normally risk 20 pips, but a trades price action stop is 40 pips away from entry , we should lower our position size to half of what we normally trade
Yes!
what if a trades' price action stop loss is 10 pips away from entry, and we normally risk 20 pips, should we increase our position size, or keep it the same and just tighten stop loss to the proper price action stop loss?
The less moving parts the less mistakes so easier to stick with your normal position size most of the time. Regarding stop-loss placement, you can't tighten it if you use a PA stop and, if you use a money stop, by reducing it you are reducing your probability as well.
Sorry to awaken an old thread. I must have forgotten to press reply.
"Regarding stop-loss placement, you can't tighten it if you use a PA stop and, if you use a money stop, by reducing it you are reducing your probability as well."
From what I understood, Al says it's okay to open a trade in a bull where max loss would be when 20 pips is hit. So we always take that position size and our max loss is 20 pips. In a bull, if the proper price action stop is 12 pips away at a previous major higher low, however, we should open a trade with the same default position size, put stop there instead of waiting for it to travel 20 pips down and be hit. Is this correct?
Is this correct?
Yes!
