Using different risk allowances for different time frames?

Discussion in 'Trading' started by Metamega, Mar 20, 2016.

  1. If you are talking about trend following, a longer time frame requires that you set your stop loss lower. If you get stopped out your loss is bigger, but if you don't you are rewarded with a long trend. Win or lose, longer frequency trading takes less work.
     
    #11     Mar 24, 2016
  2. Xela

    Xela


    Or "wider", anyway, if not "lower" (there are short trades, for which you'd often set it higher?).

    Different risk-exposure in different time-frames is completely logical, reflecting the fact that (according to what constitutes one's edge) longer time-frames may give fewer and more reliable trading signals, and one normally derives risk-exposure from expectancy.
     
    #12     Mar 24, 2016
  3. What do you mean by expectancy?
     
    #13     Mar 24, 2016
  4. Xela

    Xela