Scaling Up

[Brad 18]

Hi,

I asked this question for the next lifetime members webinal, but I am interested in others' opinions as well.

I track my trading stats on Tradervue and in my somewhat limited experience have come up with some criteria to indicate that I am trading cnsistently and am ready to scale up my size by about 25%. Even though I am trading very small I don't want to scale up too much too fast (for example, going from R=$10 to R=$20 would be too much of a jump and likely mess me up). Not many traders share their stats, so I am mostly going on my own experience to decide what is both achievable and reasonable.

Before I scale up or go from sim to live I want to see this over a period of two weeks (10 trading days):

1. Profit Factor=2.0 or greater

2. No major rule violations (somewhat subjective)

3. No more than 3 red days in the two-week period.

4. No big, lucky wins (somewhat subjective)

 

Does this seem reasonable?

[Brendon 146]

Hi Brad,

As someone who has blown up their account before, my thoughts would be:

1. Don't risk more than 1% of your account per trade, whether that be $5 or $100, don't just pick an arbitrary $ amount. With 1% you wont destroy your account and can most likely find out what you are doing wrong before it is too late.

2. Go for r/r's of 1:2, 1 risk for 2 (double) rewards for each setup you take. Make sure you partial out at your r/r levels, you can let some winners run if you want.

3. If you have a red day, the next day take just 1 trade, focus on getting back to green for the day, don't try to recover losses.

 

Hopefully this helps on a basic level.