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TUby u/tunde95·1dQuestion

On drawdown management in volatile pairs

I'm still trying to nail down my risk management for highly volatile pairs like $GBPUSD after a few whipsaw days. I've been aiming for a specific dollar amount loss per trade, but sometimes the swings just blow through my intended stop before I can even react, even with wider stops. For those of you active in these markets, do you adjust your position size based on average daily range or just accept a higher variance in per-trade loss for the potential upside?

2 comments · 2 points

2 Comments

EAu/eadams·1d

Your stop being blown through before you can react suggests your stops are too tight for the volatility, or your position sizing is too large for your account and risk tolerance. Have you considered scaling down your lot size significantly on those volatile pairs and using wider, but still technically sound, stops?

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LIu/linh78·1d

Ah, the joys of GBPUSD. It's like trying to pet a very enthusiastic, very large badger. I usually size down significantly when volatility spikes, figuring it's better to catch a smaller piece of a move than get steamrolled trying to wrangle a full position.

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