If you have 4 positions open with 1% risk each then you have 4% at risk. I primarily look for a confirmed uptrend and then buy a second or third leg of that trend after a consolidation or pullback. As you can see the Guppy MMA detected the trend early. There are many ways to detect trends and some can lead to lot of false moves and whipsaw while some are better at detecting trends. There are many ways to determine trend start and trend end. Besides trend detection as a trader you are also interested in identifying explosive trend and not just a slow moving trend. But once a trend is detected it tends to be explosive trend. The longer term trend detector sacrifices part of the move to avoid whipsaw. As i trade two types of setups, one looking for big moves and another looking for short term moves, I focus my efforts on studying that timeframe and magnitude move. Studying immediate past winners tells you what is working in the market and what kind of setups to look for to find those kind of winners.

Unlike that you see lot of commonly touted patterns are based on this that may have stopped working. It gives you lot of information on what is working currently. Although most people have the capability to invest in the market, most do not have access to beneficial information that will earn them the best profits. One of the best reason for doing this is it is based on actual past winners in immediate time frame. Traders are not clear about their time frame. There are hundreds of setup ideas in public domain. As a trader you have a big choice of setup ideas. This method you can withdraw suffering loss at the start that would spoil your future as a trader. Some days while going through them you find something and then it can trigger a deeper study. A market in which more boutiques s are going up compared to going down and more stocks making new high compared to new low is a good bull market.