Maths in Oz - DDStop

I want set out the stop loss policy I have in this and other posts as there seems to be some clarification needed.

Firstly, for me a "trade" is a multiple of 3 contracts.  Kiki and I trade in multiples of 3 contracts. This is to allow us to scale out but also to go all in and all out if the situation calls for it.

I have a concept called "drop dead stop" (DDStop) which is the most I will want to lose on any one trade ( a trade being 3 contracts).

The usual DDStop is about the length of two range bars of the market I am trading.

For the ES,  I trade 5 tick range bars. So two range bars is 10 ticks. That is $125 per contract or $375 per trade.

For the DowEuro50 its also 5 tick range bars but the maths becomes 300 Euro per contract due to its tick value of 10 Euro.

I adjust this DDStop for each trade to fit the context of the trade. I also do not use the DDStop as an exit mechanism. I usually do not allow my stops to be hit but rather exit on the market's dynamics during the trade. My entries are usually so correct in terms of order flow and momentum, I will bail if I see I read the market wrong, a long time before the stop is hit. New traders need to be wary of this as they can easily be chopped up. The SIM trading is designed to take care of this and you will have learned how to do this because I don't think you can get to CP without it.