Turning point dissection

Going for home runs It's important to understand that having an inverse risk/reward ratio, such as risking $1,000 to gain $100, isn't ideal, even if you're financing.

While this might still work, considering a high hit rate, the psychological strain is tremendous.

To mitigate risk effectively, it is crucial to have a flexible money allocation strategy based on different timeframes. Counterintuitively, a more risk-averse model involves allocating the largest amount of capital to the smallest timeframe.

Why?

It is significantly easier to predict shorter timeframes, and time itself is a risk factor for exposed capital in the markets. For instance, predicting where you'll be in five minutes is easier than predicting where you'll be a few months from now.

Another aspect to consider is the potential deception in trading multiple timeframes. It's essential to stack the odds and only trade timeframes that are highly likely to produce a high-probability signal. This is viable in a multiple-timeframe scenario.

I typically trade anticipated patterns, which are riskier but less risky from a stop perspective(fading moves).

However, for beginners, trading confirmed entries might be more prudent. This means stacking timeframes not with similar entry points but with varying entry points that occur in progressing price movements. You can maintain tighter stops by choosing sensible levels that have prudent risk/reward ratios. (reloads)

Much like we traded the recent BTC turning point on the daily chart, a sequential building of a position through reloads.

Once perfected, trading smaller timeframes with more capital can align profits nicely. This isn't pyramiding but rather risk mitigation.

My suggestions above also allow for early price entries. Imagine entering a position at a low price on a 5-minute chart. If the same price level is hit again after an hour, the probability of a higher timeframe target increases, providing less risk and more opportunities.

Through time, you will discover advanced money management strategies that address common trading issues, something that's taken me 20 years to solve based on principal ideas. By dissecting timeframes fluidly based on the probability of pattern fulfillment, you can fully grasp this principle and its solution.

One solution to risk is extending trade scenarios to daily and weekly timeframes=runners.

You can also mitigate risk by adding smaller timeframes to larger ones, offering substantial benefits in terms of providing for low-risk income-producing trades with possible runners to be hip-pocketed to higher time frames.

From a psychological perspective, it allows for manageable risk and potentially high reward ratios, making it more feasible to achieve high-risk reward scenarios through multidimensional trading across time prisms.