Risk distributed across various orders
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Hi all!
I hope all of you are doing great. I want to distribute risk across various orders, but I don't think I am doing it the right way.
Lets say I have a 3000 USD account and the idea is to open 1 micro lot and get to a target profit of 1 USD. If it fails, when the price goes, lets say, 40 pips against us, I'll open a second order 3 times bigger
aiming for the same amount (or proportional...suggestions?)up to a maximum of 10 trades and having a maximum of 1% of risk combining all of them.
Probably I won't be able to have a maximum of 1% of risk with an account being this little, because 1% of that is 30 USD, so It needs to be limited in some way (for example, if the sum of lots is equals or bigger than the allowed, then no more trades can be opened
and maybe this is like a maximum of 2 trades opened at same time until the account gets bigger). My struggle is trying to control this. I don't know if what I'm trying to do is right. Also, should I use the equity or free margin to do the calculations?
Thanks in advance! I hope this is understandable. :D