Last week was missed by me because of a holiday excursion, but this week it is time to continue with a refreshed mind. I have been thinking some money management issues today after getting live trading experience from a couple of days so far. I initially thought to use the smallest lot sizes for all trades for a while, but that is a bit too close to demo trading - you use lots of time just to see how you make or lose an € or two. I still think to practice with tiny trades with those systems I'm not yet comfortable enough.
But now I am facing the question how to weigh the trade sizes against each other, when several systems are in use at a time. Dale has stated that none of his positions exceeds 1.875% margin of the total capital. This is a decent rule. But do you folks use this kind of a rule as a lower limit as well opening each trade with about the maximum margin? I have been thinking to use the potential maximum loss as another factor in counting position sizes. This would mean that longer-term systems, i.e. VS and DMS would be used with smaller position sizes than the shorter-term ones. In addition, those pairs that have higher volatility would be reduced in trade size. Does anybody apply these kind of money management rules, or how do you balance your trades? chirules54 presented his method in
post #83 for weighing the pairs within one system, and I wonder if somebody has invented something like that for concurrently used systems.
J.