Poll: Your money management?

In my continuing series of polls, I wanted to present one on money management.

Please participate in the other polls too, lets get to know each other as best as we can!



2% here with a view to scaling it down when the account grows above £100k

Interesting. My plan is to reduce it to 1% when my account grows to $100,000,000 :stuck_out_tongue:

I sometimes wonder if its the right thing to learn to trade with larger risk, and work on getting the emotional aspect regulated, rather than stick to a limit of 2%. Some really good traders do risk more than 2%, they just have a good knack on when they can do it.

My initial position is 5% and I use scaled pyramiding to capitalize on persistent trends.

Breakout trader, eh?

2% a trade, keep it simple.

Everytime I’ve risked more than 2% I let my emotions come into play too much. It’s easier for me to stick to my original strategy if I risk lower.

One day I’ll trust myself more! :smiley:

3% at the moment. Obv when i make millions ill be cutting it down to much less :stuck_out_tongue:

Trading at 100% risk per trade. One wrong move and it’s all over. To counter that their are significate mesures put into place, focused at long term all the time of course. But it’s 50% sure that in a 10 year span I go bankrupt at least once.

Security lies within risk.

Hmm, my robot risks 4% on the first part, then 4% on the next part and then 12% at the least part. Together 20%. But “he” has no heart and zero emotions.

And because he is good in calculations, it’s always calculated right down to the penny. So, if there will be losses, it needs way more losses than 5 to get a margin call. Because it’s [U]always[/U] 20%.

I for myself do rather count in pips right now than in percent. Plus priority based on my calculations. If my account grows too large, I will switch that and have to change the lot size accordingly, though. I guess I will trade then based on maximum 1%.

In theory, you’ll never go bankrupt.

Well, backtesting shows 100% success rate over 2 years in 56 trades (27 signals) and forward live account shows 100% success rate over 3 months now with 5 trades/signals (where the trades from backtesting are identical). Show me any system with the same success rate, please.

Best of all, the deposit is just what I usually pay in a year for stamps. How may I get bankrupt even if I would lose my account after 10 loss trades in a row (though, not very likely)?

So, may I ask what you are exactly supposed to talk about? Huh? :confused:

Just for the record: My confidential system is [B][U]not[/U][/B] for sale. :smiley:

That somebody has not seen the light doesn’t give evidence there is no light. :stuck_out_tongue:

Most traders trade too much. Way too much. My robot trades only once or twice a month. Only the best of the best trades can be good enough.

May I ask what your success rate is? :slight_smile:

I generally trade at a 5% risk level on entry but move the stop up to BE as soon as possible.

I think the main thing for me is that I manage that risk by sizing my position with everything I have based on Portfolio $ Risk / calculated stop loss X pip value. i.e a $50/(12pips X $1/pip) = 4.1667 mini lots for a $1,000 account

I use a dynamically calculated stop loss based on actual price movements so I can basically take the largest trade possible within my risk parameters.

I risk up to 5% per trade… fall into major categories…

would it be good or bad? (i wonder…haha)

I look at risk percentage based on the ability to recover from a catastrophic event, like deductibles on insurance policies. The higher the deductible, the lower the cost of insurance because the customer takes on more of the risk.

In theory, 5% would allow roughly 20 losses in a row before busting out. In reality this number is much less since even a 50% loss in trading capital requires a 100% profit to break even.

So how much can you afford to add to your account after a bad loss, or a string of reasonable ones? The more you can re-fund the account, the greater risk that account could sustain.

Higher percentage risk levels give trades either 1.) more room to breathe via a larger pip stop loss relative to a fixed position size, or 2.) a larger position size relative to a fixed pip loss setting. Either scenario produces a statistical edge; time for the trade to mature or, maximum profit from tighter stops (loss and take profit).

I suppose there is a mathematical formula that could express which option produces the better return for a given % risk value.

5% works for my trading account and ability to re-fund it.

Interesting. My plan is to reduce it to 1% when my account grows to $100,000,000

Actually. More account size - less risk. It’s human psychology. We fear loss such money!

i put my stop los under/ over S/R Poits so i dont lock up on percentages.

actualy working prety good

I use a very unique style of money management.

it uses martingale to some degree but my initial risk is 0.2% going up to 5.4% with a max loss of 8% of balance before i repeat the cycle starting from 0.2% again.

To date i have not once hit my max loss of 8% as my win rate for each trade is above 70% but when i do it will only wipe about 2 - 3 weeks of gains so even in worst case scenarios the system stays profitable in the long term.