Well some time ago I saw a post here in one of the threads (and I searched and searched and I couldn’t find this post) about different types of money management and I wanted know if anyone could steer me to some literature (online, or book, but I’d prefer online) about different Money Management Strategies.
Right now I’m doing a fixed fractional method choosing my lot size depending on the risk of the trade as well as the percentage of my account that I would be risking but I’m curious about reading other anti-martingale strategies.
Here is one i will throw out there keep in mind money management strategys can only enhance a already flat profitable trade method.They not will make losing trades into winners.I have not tried this,but i cant see how it would hurt high percentage trades above 75 percent.
Trade with 2 1/2 percent of capital after each profitable trade raise it .40 percent after a losing trade drop it .20 percent never go higher than 5 percent of capital or lower than 1 percent.When you hit 5 percent revert back to the 2 1/2 percent of captal.This will enhance any streak of winning trades and you will be backing off any consecutive losing trades.The killer on this would be the chop(up and down) just like the market winner loser winner loser.That is why it is important that it is a high win percentage method so you take full of advantage streaks in a controlled fashion.The reason i thought about this was Oanda uses units so you can be quite specfic about your trade amounts.Now i just have to find that high pct method.
Some investors use some form of kelly criterion strategy.I dont know of any books Reaper that i have read Dr Thomas Carr,Toni Turner they spend just few pages on it.They do have entry and exit strategies percentage profit exit,price resistance or price support entry,average true range,parabolic Sar stop,price pattern entry.
