Sigma-D:The Sum of All Devils

Sigma-D

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Reward/Risk - And Bite Size

It's not the size of the move - pips or points or pence or cents - that matter, but the relationship between the size of the move and the size of the initial stop (and therefore position size).

Taking a 100pip move with a 50 pip stop is fine.

Taking four 20 pips moves out of the larger 100 pips move with 20 pips risked each time produces a relative win double the size of the former strategy. It's also statistically more likely to hit those 20 pips moves than one for 100.

Lots of little bites will yield greater return than one big lazy chomp.
 
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