Take it as something simple, because it is really simple when you get used to calculating it. Its like one of these games where you are looking for some hard math solutions, but it turns out to me that you need to find how many squares and circles are there. When I took the cryptocurrency – algorithmic trading course I felt as real beginner, but then I figured it out
The idea is that we compensate the loss if the price goes against the initial trade. The lots come from the calculation. The constant is 1:3 – mid zone to TP.
So if you choose 210 TP and 70 Mid zone, that is the same ratio.
After that you want to enter with a new trade on the opposite direction which is 70USD lower, and you place another 210 as TP. So the total distance for the first trade is 280 right?
So the questions is what is the lot size that will cover the loss of 280USD?
You grab the calculator and start to place number higher than 1.0, such as 1.1, 1.2 1,3, 1.4, and that’s it. At 1.4 times 210 is 294USD, which exactly covers the 280USD of a loss. And you have 14USD left for swap, commission and so on. The same logic repeats with the next lots.