Crisis of 2021
We consider the lot of open trades:
you need to add up all the open trades on the account: 0.63 + 1.2 + 1.5 ... etc
For example, we got 50 lots in total - this is $ 50. This means that a change in the price of a currency pair for every 100 points changes the drawdown level, for example: 121.100 -> 121.200
If the trades are open for a lower SELL, then the downward movement will reduce the drawdown by $ 50 for every 100 points, and the upward movement on the contrary will increase by $ 50 for every 100 points
If the trades are open for an increase in BUY, then an upward movement will reduce the drawdown by $ 50 for every 100 points, and a downward movement on the contrary will increase the drawdown for every 100 points
So you can calculate how much your account will withstand with the current balance, if the price of the currency pair continues to move not in your favor.
Technical analysis. Review:
I recommend TradingView (website or app) to view charts on your own.)
The overbought/oversold level is a fairly important indicator. Now it is at peak values - this means that in order for the price to continue its movement, a lot of money from large investors will be needed. Is it possible? Yes. But statistically, the movement of 3000-3500 points without corrections to push even further seems to be an extremely difficult task.
Now you will see the pictures of the charts, where you will see the potential price reversal points. It is important - it is not 100% - it may bounce a little and return, it may be a false breakout, and so on. Nothing is 100% certain. The Waiting mat shows a correction for all currency pairs.
USD/CHF https://www.tradingview.com/x/A2123WoE/
EUR/USD https://www.tradingview.com/x/4grVtYJA/
Options for exiting deals:
- Top up your balance, leave it as it is, and wait for the correction
Close the largest trade (about 30%), and wait for the correction for the rest of the trades
Open multiple trades along the trend. For example, your lot rate is 50, when opening deals for 20 in the opposite direction, the drawdown will change only by $ 30 per 100 points (in both directions), so here you also need to think carefully
Calculate all these options at the moment: free money, possible movements to the specified zones, the possibility of replenishment and readiness to close some part of the positions in the negative
The ideal way out of the situation is to exit the biggest trade with minimal losses (for example, the market will adjust slightly), and wait for the rest of the trades to take profit.
Waiting for an answer today: Your lot and Option