Thanks for posing a problem without a solution. And with a SL, there is a set risk. What's your credentials?
I admit to everyone that scalping is boring. I entered long 5 contracts a while ago at 3849.75. instead of doing my scalping strategy, I put TP at 3860 and won for profit of $2562.50. It must have just barely hit it because it doesn't even show 3860 on the 5-minute chart before plummeting to 3828, then back up to now above 3860 again since I started writing this.
The winning part is. Not the losing part. That part is nowhere to be found here. "Take care of your losers, the winners will take care of themselves".
I think it's all about "stop and reverse" to manage risk. I stopped using hard stops for a while cause I like to trade around bull/bear condition rather than worrying about how accurate i need to make my entries. With stop and reverse, you just need to figure out what's your max cycle that will still give you +ev. You can determine that based on your individual entry %
You mean in the 1% of times that my SL is hit, rather than just close for a huge loss, I should close and then immediately enter the opposite trade?
The purpose of the post and all the backtesting, etc. is to find how to lose in the most mathematically/statistically correct way possible.
if you scalp trade you should not have a stop loss - you should have a death stop, in case you die. few will understand
basically my strategy revolves around what's the max expected losses in a row for given % entry accuracy. You stop n reverse cycle will be based on this. Then again, your r:r is so skewed i don't think this will work if you reverse it. But at least something to think about lol https://math.stackexchange.com/ques...ve-failures-over-n-period-given-p-success-rat