I cut gold size in the overlap because the wick I have to clear is often twice as wide
Posted: Sat Nov 14, 2026 8:24 pm
Same gold short, same structure, two very different stops. In the London morning the wick I have to clear might be $8 or $10. In the London-New York overlap it can be $18 or $24. If I keep the same lot, I am no longer taking the same risk.
The schematic is that comparison. Both sides use a short from 4,038. On the left, the sweep wick goes to 4,048 and I put the stop at 4,050, $12 beyond the entry. A 0.03 lot, 3 ounces, risks $36. Target at 4,002 is $36, a clean 3R. On the right, the overlap print of the same idea wicks to 4,058 and the stop that actually sits past it is 4,062, $24 from the entry. My broker steps in 0.01 lots. A 0.02 lot would be $48, which is over the $40 I allow. A 0.01 lot risks $24. That is the size I would use, and the same 4,002 target is then only 1.5R.
I don't make up the smaller risk by taking a second gold trade. I take the 0.01 lot or I pass. The structure can be identical and still not be the same trade once the wick doubles.
The schematic is that comparison. Both sides use a short from 4,038. On the left, the sweep wick goes to 4,048 and I put the stop at 4,050, $12 beyond the entry. A 0.03 lot, 3 ounces, risks $36. Target at 4,002 is $36, a clean 3R. On the right, the overlap print of the same idea wicks to 4,058 and the stop that actually sits past it is 4,062, $24 from the entry. My broker steps in 0.01 lots. A 0.02 lot would be $48, which is over the $40 I allow. A 0.01 lot risks $24. That is the size I would use, and the same 4,002 target is then only 1.5R.
I don't make up the smaller risk by taking a second gold trade. I take the 0.01 lot or I pass. The structure can be identical and still not be the same trade once the wick doubles.
- 03-gold-overlap-size.png (136.16 KiB) Viewed 13 times