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Old 10-10-2008, 02:58 PM
mtandk0614 mtandk0614 is offline
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Join Date: Mar 2008
Location: Montana
Posts: 122
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Default MM for Cowabunga

First off...Thank you for the indicator...it makes life much easier when trading this system.

I have been watching my account balance grow using this system, so I figured I would add my 2 pips to help anyone out with their MM.

Personally I dont like to risk more than 1% of my account on any single trade.
To accomplish this task when using the Cowabunga system I use the following formula:

Right before you open your trade, look at the last swing (high or low depending on your trade). Take your current account balance and the number of pips to your stop loss....then add two zeros to the amount of pips you are risking....divide the account balance to the pips w/ the two zeros:
EXAMPLE: $5,000 account, open a sell order, last high swing is 35 pips from when I am going to open the trade. So I take 5,000 / 3500 = 1.42
I would then want to risk $1.42 per pip...if my stop is hit, then I have lost 1.42x35 = 49.70 which is just under 1% of my account balance.

I know this is a little off topic for most of the fourm, but I felt a bit guilty feeding off everybodys information and time with out contributing something.

Happy Hunting
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