- Average range of 60m bar = 5
- Average range of daily bar = 20
- Average range of weekly bar = 40
- Average range of monthly bar = 80
- 2:1 reward-to-risk, your target is equal to the average range, your stop is equal to 1/2 that range
- Win percentage needs to be at least 50%
- Trade continues until stop or target hit with no other intervention
- 60m bar position size = 1
- Daily bar position size = 4
- Weekly bar position size = 8
- Monthly bar position size = 16
Questions:
- Is it better to trade the 60m, daily, weekly, or monthly period?
- Why?
- Which periodicity has the most risk?
- Why?
- Which periodicity has the most potential profit?
- Why?
If you need to make additional assumptions not defined in order to answer, please define them as part of your answer.