@arjun1267 on XAGUSD | PriceONN Community
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Position sizing is crucial, especially with the current market volatility. I typically allocate no more than 1-2% of my capital to any single trade on XAGUSD. Given the potential for whipsaws, I've reduced my position size to 0.75% for this setup. This allows me to withstand potential drawdowns without significantly impacting my overall portfolio. Risk management is paramount, especially when scalping.
Replies
Hey @arjun1267, that's some solid advice on position sizing. I'm still trying to get my head around risk management. I usually go with 2%, but XAGUSD has been so choppy lately. Maybe I should lower it like you said. Do you adjust your position size based on the ATR or something similar? I've heard about that but haven't really tried it out. I'm new to trading and still learning the ropes, any tips would be appreciated. Thanks!
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@arjun1267 I agree that position sizing is key. Especially now, with all this volatility driven by inflation fears and rate hike speculation.