tag:blogger.com,1999:blog-26012405.post230723972859996958..comments2024-03-10T12:27:40.157+00:00Comments on the trend follower: Talking in terms of R - updatedUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-26012405.post-43567262035408342552014-07-06T22:26:08.506+01:002014-07-06T22:26:08.506+01:00For me it is the risk distance of 2%, and I guess ...For me it is the risk distance of 2%, and I guess that is how most traders calculate it. The 2% of equity is what I am prepared to risk on a position. However with my stop methodology I try and reduce my risk as soon as possible by moving my stop closer to entry. However, there is always the possibility of a gap down, excessive slippage etc., meaning you can lose more than you risk.Trader Stevehttps://www.blogger.com/profile/07875469634283453010noreply@blogger.comtag:blogger.com,1999:blog-26012405.post-271808394218367902014-07-06T21:52:37.920+01:002014-07-06T21:52:37.920+01:00so do you base your R risk as the percentage of di...so do you base your R risk as the percentage of distandce your stop is Or the amount of capital you have invested vs. total equity. So i am risking 2% in terms of stop distance, but have 7% invested in terms of equity balance, what do you consider to be yoru risk? the 7 % invested or the 2% stop distance? Anonymousnoreply@blogger.com