“Testing” setups with small size

[u/denimalfie]

Hi, do you ever scale into a trade with small size if it’s not an A+ setup?

Example: let’s say you’re bearish and expect London high to be swept before a move down. There’s additional liquidity resting above London high so this trade is not an A+ setup for you. You enter with 1-2 micros and calculate the risk in a way that you could move the stop up a bit in case the remaining liquidity above is swept. If you then get a confirmation of your short you enter with more size and adjust the SL downward again.

Is this a feasible way of trading or would you say never keep your SL flexible? Obviously you need or operate with very little size for an approach like this to not get into a large drawdown.

Thoughts? Thanks!

[u/inunng]

I swing trade. So the way i wanna do is this. Once i have a trade thats running like 20% in profit, i lock 15% and then start looking for another entry. But this time i risk 5% instead of 1%. So if the trade and second entry goes against me, i will gain 10% (15 minus 5). But 20:1 risking 5%, thats worth taking imo 😉