Position sizing
It is part of the trading game. Position sizing enable traders constantly and consistently using the same amount of capital every single trade. Beside having a fix amount to trade, it also provides traders the ability to monitor winning rate, calculations of profit per period.

Let’s us take a look at the formula for position sizing:

No. Of shares = (risk in percentage * total capital) / risk in $ per share

Maintaining this position, keeping my risk/reward ratio, now let’s input my winning ratio is of a 50%

2% of the capital $10k * winning rate of 50% = 100$
1% of the capital * losing rate of 50%
= $50
Net profit per trade = $50
Make 100 trades = $50*100 = $5,000

The trader has made 50% return on capital per period

Hence, it highlights the importance of position sizing.

Automate trading

Psychology

6 trend retracement strategy

Trend retracement system
retracement-dip on uptrend

retraecment-rally on a downtrend

Long Trade set-up
SP500 is bullish 20EMA > 50MA
Relative strength 85 and above
strong uptrend 20>40EMA, 150>150MA
bounces off MA, or trendline
bullish candlestick pattern
breaksout
MACD(12,26,9)/Force index (13) is bullish or William%R Oversold

entry rules
trade management and exit rules

Stockprice and entry rle settings
$10-49: 3cents
$50-99: 5 cents
>$100: 10 cents

type of taking profit method
full targetted profit
1/2 targetted profit
depending on technical analysis