To understand "Amount of Money", it is better to understand this with some example.
Take our case of SBIN; which I bought @ 1915. At ATR/2, its SL or TP level is 1883 or 1947. Or Rs. 32/- lost or gained in each trade.
Simply assume, this ATR/2 level or Rs. 32/- is our "Amount of Money" per trade.
Assume, if it is a profit, define it as 'P'. If it is a loss, define it as 'L'
We have to normalize this or fix this for the entire method according to our capital.
Take example of 1 lac starting capital and SBIN, HEROMOTORCO, UNITECH, RANBAXY, LT, MARUTI as our first 6 securities.
So we perhaps need to buy each securities of 10,000/- value @ CENTER price. Again, I am reminding, I shall discuss later in details what is this CENTER price...how to determine it. So please don't ask now. Just assume the following.
Securities Center Price ATR/2
======= ========== =====
SBIN 1915 32
HEROMOTO 2050 55
UNITECH 29.5 0.75
RANBAXY 505 7.5
LT 1375 24
MARUTI 1119 18
Take our case of SBIN; which I bought @ 1915. At ATR/2, its SL or TP level is 1883 or 1947. Or Rs. 32/- lost or gained in each trade.
Simply assume, this ATR/2 level or Rs. 32/- is our "Amount of Money" per trade.
Assume, if it is a profit, define it as 'P'. If it is a loss, define it as 'L'
We have to normalize this or fix this for the entire method according to our capital.
Take example of 1 lac starting capital and SBIN, HEROMOTORCO, UNITECH, RANBAXY, LT, MARUTI as our first 6 securities.
So we perhaps need to buy each securities of 10,000/- value @ CENTER price. Again, I am reminding, I shall discuss later in details what is this CENTER price...how to determine it. So please don't ask now. Just assume the following.
Securities Center Price ATR/2
======= ========== =====
SBIN 1915 32
HEROMOTO 2050 55
UNITECH 29.5 0.75
RANBAXY 505 7.5
LT 1375 24
MARUTI 1119 18