Can anyone give me examples of strategy/risk management combinations I can research?
(Or, explain one or two of yours if you’re feeling especially gracious.)
For example:
“_____ risk management strategy works well with lower-term mean-reversion strategies.”
Or:
“_____ risk management strategy works well if you like to play _____ price action event.”
It would be amazing if I could get like 20 combos to binge-research over the weekend 
, but I’d be grateful for any good ideas 
.
I’m curious. Why do you want to research strategy/risk-management combinations, specifically?
(I’m not trying to imply that I think you shouldn’t, or that I think this would be a bad use of your time, or that there’s something else you should be doing instead. I am - literally - “just curious” because it’s not something I’ve ever seen anyone ask before, in those terms.)
This one makes me wince, for a start. That’s my problem, though. (I wince every time I see the words “mean-reversion strategy” rather than “mean-reversion fallacy” or “mean reversion trap” in a beginners’ forum).
May I ask a question, @playingmarkets ? Do you actually have a trading strategy and want to find a risk-management technique that will make it work well and safely? Or do you have a risk-management method you want to try to use and are looking for a trading strategy with which it might work well and safely? Or neither of the above? (It will probably be easier for people to help you if we kind of “know where you are” to start with?).
(Unneeded?) Context:
I can eyeball trade crypto upswings very well, just with trend and basic levels. I mostly play the rotations between BTC CME, BTC spot, and Alts to get bigger gains on BTC’s most obvious moves. I look at different sets of indicators but they are mostly just pretty colors on the charts at this point for me.
It’s easy and doesn’t take me much time because my trades are days or weeks long and just set price level alerts.
So:
From there, I have further goals.
I am out of the market a lot of the time and am beholden to the greater trend for my “strategy.” Plus, I see the big boys play different games in other markets.
So:
Personally, I am very frugal but have a high risk tolerance. I can also commit 20-30 hours to learning per week. (And learning things is probably my best skill.) Stories of 50%/month make my mouth water; tales of account blow ups send shivers down my spine.
I guess I’m looking for:
I play ____ moves and manage my risk based on ____.
I basically want to download a bunch of strategies into my brain, with risk in mind every time. I know from experience that I’ll make connections across all of them that will give me a better overall understanding, some of which I probably won’t even be able to articulate but become a part of my “trading intuition.” (ie. the big batches of similar posts on my blog)
I started to go (and on and on) about how this works but stopped myself—just know there is a method to the madness.
The combinations of trade management are endless. If it doesn’t suit your personal risk tolerance, it’ll be harder to follow. Depends the kind of person you are.
-Do you like to aggressively add to winners, keep a one-trade win or lose, or passively add to losing trades?
-Do you want to start with a large lot size, then decrease, or used a fixed lot size, or start small and increase size?
-Do you like to pursue Reward greater than what you risk, or Risk more than your potential Reward, or even distancing.
-Do you prefer trading historical prices, current price action, or anticipation of price?
That’s just some of the popular combinations. There is no entry strategy better than another. All trades will follow their respective expected values as the Forex market is very efficient, very liquid. If there was an entry strategy that had an advantage, the counter trade side would prefer to provide liquidity at another time, at better pricing. Every weekend, every scenario is ran through. Inefficiencies are quickly taken advantage of.
This is really helpful, thank you I want to learn more about risk and strategy combos too hope people share more ideas!
Thank you! These are questions I didn’t even know enough to ask myself. Extremely helpful.
As it stands, I have virtually no preference and am completely open but will keep these in mind as I research different styles.
What’s your favorite roulette strategy?
are you comparing trading with gambling?!
No, the comparison will help classify his appetite for risk and correlate to a risk management strategy.
Google AI defined Risk Appetite as
refers to the level and type of risk an organization is willing to accept while pursuing its objectives. It’s a key aspect of risk management, influencing decision-making and guiding strategic choices. Essentially, it defines how much risk an organization is comfortable embracing to achieve its goals, considering both the potential rewards and the potential consequences.
Hmmm…
Ideally, I’d like to try on a few styles. I’ve come from crypto, so I feel that my risk tolerance/appetite is probably comparatively high compared to most.
This question is hard to answer, because I would never play roulette with my own money (the irony is not lost on me 
). And I’m not sure how much the house taxes the table. But I think I understand the point of the question.
I’d probably do something like put 10-20% on the moonshot and play more conservatively with the other 80-90%… maybe splitting the bigger portion between two strategies.
Does that answer your question?
More conservative being R-multiple below 1, and more riskier being above 1, a R of 1.1 might be good starting point. Ie; Risk $100 to make $110.
It’s an easy and fair comparison: the striking similarity is that trading CFD/spot forex is betting against a counterparty (misleadingly and wrongly called a “broker”) on the price-movements of that counterparty’s products (misleadingly and wrongly called “currency prices” to try to encourage people betting to believe that currencies are actually changing hands, when they’re not).
So it’s not just like betting. It is betting.
It’s clearly explained in the Babypips school - this lesson will help you -
Hi Theodore,
To be fair to @margaretwantstotrade , people do use words differently. Nobody’s questioning that spot forex-trading is betting, but there’s a (perfectly legitimate and reasonable) perception that “betting” and “gambling” are two different things, you know? 
Obviously people “trading spot forex” are betting on the price movements of a product that a market-maker’s created specifically for them to bet on it, but equally obviously it’s a skill-based activity.
Many people mean “based on pure chance”, when they say “gambling”, and in that sense, forex-trading isn’t quite “gambling”. 
Are you familiar with STP brokers? if so, that is against your information, you are not trading against a broker you are trading using a broker!
betting is earning or losing money based on another person, trading is based on your analysis! like when you predict that there may be a war and you also know that in a war gold price goes higher so you buy gold! you do not do anything aginst anyone!
No, Margaret, sorry but that absolutely isn’t so at all. An “STP” broker is also your counterparty. It’s really very clearly explained in the Babypips school, and in literally hundreds of posts here!
Here are just 5 of them, to start your collection! 
RISKmanagement is the ONLYTHING WE CAN CONTROL
Up to you what your risk tolerance is (maybe 1% or 2% or more if you like) try to put SL in a rerelevant position rather than just an arbitary % but always use a SL even if it’s just for unseen emergencies.
I use my account as the SL
Margaret, I’m very familiar with them. I’ve been in the industry for decades. You don’t have to believe me, if you don’t want to.
I absolutely don’t want to be impolite to you and I absolutely don’t want to have an argument with you.
Please excuse my pointing out two things: -
As explained above, you’re very mistaken indeed, in what you’re saying (partly because the so-called liquidity provider to whom the trades are allegedly processed is so often owned by the broker anyway - which they don’t disclose - but also for a whole bunch of other reasons many of which are explained in the Babypips school and in countless other places);
I’ll be direct and open and honest, again with no impoliteness intended, and admit that I find it pretty galling to see you repeating widely-believed misinformation here while at the same time telling me that what I’ve said is misinformation, so I’m going to put you on my ignore list now, and respectfully suggest that you should do the same, as we’ve all now seen a few times that my posts obviously irritate you (which was never my intention and for which I apologise).
Good luck and happy trading and good wishes to you.
Theo
Idk, seems like the financial markets are just one big casino.
At first I thought this was an underrated joke.
Then I thought I should check because this is kind of what I do when taking a punt on some altcoins… just throw in 1% with the assumption it will either go to zero or moon for me before going to zero. And I only do that with like 10%, capping my risk there.
Is that what you mean?
I allocate a small % of my total trading capital to an account. Lose the account would be like a large stop loss.