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Can I trade large positions?

Updated yesterday

Yes, you can trade large positions! But to avoid violating the 40% Consistency Rule (CR), you must balance big wins with other profits.


Here’s how:

πŸ›‘ The Risk of Large Positions

Rule: Your biggest winning day can’t exceed 40% of your total profits.
​Problem: A single huge win can dominate your CR β†’ continue trade needed!

Example: Trader Jake ($10K Account)

Day

Trade

Profit

CR Calculation

Status

1

5 lots Gold

+$5,000

$5,000 Γ· $5,000 = 100%

❌ Fail

2

1 lot Oil

+$300

$5,000 Γ· $5,300 β‰ˆ 94%

❌ Fail

3

1 lot Forex

+$200

$5,000 Γ· $5,500 β‰ˆ 91%

❌ Fail

Jake’s mistake: His Day 1 gold trade is too dominant (91% of profits).


βœ… How to Trade Large Positions Safely

Option 1: Split into Multiple Days

  • Day 1: Close 2 lots Gold β†’ +$2,000

  • Day 2: Close 3 lots Gold β†’ +$3,000

  • Day 3: Trade Oil β†’ +$500

Result:

  • Biggest win = $3,000 (Day 2)

  • Total profit = $2,000 + $3,000 + $500 = $5,500

  • CR = $3,000 Γ· $5,500 β‰ˆ 55% β†’ Still high, but easier to fix!


Option 2: Add Smaller Wins First

Day

Trade

Profit

Total Profit

CR

1

1 lot Forex

+$400

$400

β€”

2

1 lot Indices

+$600

$1,000

β€”

3

5 lots Gold

+$5,000

$6,000

$5,000 ÷ $6,000 = 83% ❌

4

1 lot Oil

+$800

$6,800

$5,000 Γ· $6,800 β‰ˆ 74% ❌

5

1 lot Forex

+$900

$7,700

$5,000 Γ· $7,700 β‰ˆ 65% ❌

6

1 lot Indices

+$1,500

$9,200

$5,000 Γ· $9,200 β‰ˆ 54% ❌

7

1 lot Crypto

+$1,800

$11,000

$5,000 Γ· $11,000 β‰ˆ 45% ❌

8

1 lot Forex

+$1,000

$12,000

$5,000 Γ· $12,000 β‰ˆ 42% ❌

9

1 lot Oil

+$1,000

$13,000

$5,000 Γ· $13,000 β‰ˆ 38% βœ…

Key: Jake added $8,000 in smaller wins after his big gold trade to dilute the CR.


πŸ“ Golden Rules for Large Positions

  1. Partial Close Strategy:

    • Close 50% of a big win today, 50% tomorrow β†’ creates two smaller wins.

  2. Pre-Buffer Trades:

    • Make 3-4 small trades before your big move.

  3. Avoid "All-or-Nothing":

    • Never risk >30% of your capital on one trade.


πŸ’‘ Think of it like pizza:

  • One giant slice (80% of the pie) = ❌ Unbalanced

  • 8 medium slices = βœ… Perfectly shareable!


⚠️ What NOT to Do

Scenario

Result

CR Impact

One 10-lot gold trade

Win $10,000

100% CR β†’ ❌

No other trades

Total = $10,000

Violation

Then take a $2,000 loss

Total = $8,000

$10,000 ÷ $8,000 = 125% 😱


βœ… Summary: Trade Big, But Smart

  1. You can trade large – just don’t let one win dominate.

  2. Dilute big wins with smaller trades.

  3. CR is your friend – it stops gambling habits!

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