⚡️ HOW TO SET UP STOP LOSS - SL AND TAKE PROFIT - City in WALL STYLE
🔸 In this article, I will instruct one more method to get Target SL / TP according to Project Team.
➡ 1. Define and clearly classify participating projects.
For example, there are 6 projects in total: A1, A2, B1, B2, C1, C2
With the principle: The profit is proportional to the risk, the higher the profit, the higher the risk.
We use "Fundamental Analysis" to divide projects into the following three categories:
Low Risk: A1, A2
Medium Risk: B1, B2
High Risk: C1, C2
➡ 2. Divide projects into groups including:
1 Low Risk, 1 Medium Risk, 1 High Risk
According to the above example, after selecting, we have the following groups:
Group 1: A1, B1, C1
Group 2: A2, B2, C2
➡ 3. Set Target SL / TP for groups at Risk: Reward - 1: 3 (20:60)
Take for example Group 1 with capital: A1 (20,000 $), B1 (10,000 $), C1 (5,000 $) with total capital: 35,000 $
When applying a 1: 3 ratio for Group 1, we have:
Cut loss when -20% of Total Group Equity = -7,000 $
Take profit when + 60% Total Group Equity = + $ 21,000
When reaching Target TP and still want to continue earning interest, do the following:
Total Group Equity $ 35,000 + Group Interest $ 21,000 = Total Group Equity (New) $ 56,000
Stop Loss when -20% of Total Group Equity (New) = -11,200 $
Take Profit when + 60% Total Group Equity (New) = + $ 33,600
So after finishing the Target SL / TP for Group 1, the rest of the groups just do the same!
🔸 There will be a question that:
"Why not take the total capital of 3 items: Low Risk - Medium Risk - High Risk and divide it according to the ratio 1: 3, but have to divide into groups like that?"
Reply:
Not all projects are the same, breaking down is convenient for managing projects.
The more groups are divided, the more data will be available to predict the market trend. (Standard is 3 groups)
In the previous article, when we reach Target SL -30%, we will have to cut that coin, however, when dividing the group like this, we will have more information to control and consider the gong to cut. hole.
➡ 4. Note:
The above formula is only suitable for projects that are carefully monitored and selected, with good location and good prices.
The formula is dead, the market is alive, during use should be flexible to suit the situation, don't be too mechanical!
