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The video is self-explanatory.
The key here, in controlling risk, is to calculate position size accurately.
Position size is measured in units and is calculated thus:
Risk = maximum lost per trade in dollars
Stop = the downside risk in points
Pip cost = dollar amount per one tick movement
The Position Size is the Risk divided by Pip Cost multiplied by the Stop all multiplied by 10,000:
Position Size = Risk / (Stop * Pip Cost)
All multiplied by 10,000
If you use Oanda, this gets done for you automatically.
The key here, in controlling risk, is to calculate position size accurately.
Position size is measured in units and is calculated thus:
Risk = maximum lost per trade in dollars
Stop = the downside risk in points
Pip cost = dollar amount per one tick movement
The Position Size is the Risk divided by Pip Cost multiplied by the Stop all multiplied by 10,000:
Position Size = Risk / (Stop * Pip Cost)
All multiplied by 10,000
If you use Oanda, this gets done for you automatically.