Lipkgani
01-04-2023 06:41,
I'm learing a lot about money management. Therefore I thought that I should begin a thread..where we can talk, disect, analysis some money management techniques. I'd like the more experienced traders so we can find out something about money management to direct this thread. Everyone is welcome to post their manner of money management.
Ok. . .here is a few Fixed-ratio MM as in ryan jones book
begin with an account dimensions that's atleast 3 times larger than your anticipated drawdown. Can be a drawdown calcualted?
1. Begin with the amount of dollars on your trading account. For example
let's say it's 1000 USD.
2. Now select the number of pips profit you need to achieve before you exchange with
more lots. Let's say 200 pips (10 pips/day for 20 trading days in a month
average).
3. Now begin trading.1 mini lots (which is profit/loss 1 USD). You would just
grow to.2 lots after gaining 200 pips. When you gain 200 more pips profit
you would trade.3 lots etc.. .
4. Month 1: $1000 (200 pips x .1 lot = $200 ) Total: $1200
Month 2: $1200 (200 pips x .2 lots = $400) Total: $1600
Month 3: $1600 (200 pips x .3 lots = $600) Total: $2200
Month 4: $2200 (200 pips x .4 lots = $800) Total: $3000
.
.
.
5. If following the first month that your balance falls below $1200 you are back to 1 lot. And so decrease your lot everytime you drop below the previous increment level.
This is the egy discussed in ryan jones book..in more detail. What are the downsides of using this egy? What do you guys consider this egy? What egies are there which we talk or can use?
regards
gabroo
Ok. . .here is a few Fixed-ratio MM as in ryan jones book
begin with an account dimensions that's atleast 3 times larger than your anticipated drawdown. Can be a drawdown calcualted?
1. Begin with the amount of dollars on your trading account. For example
let's say it's 1000 USD.
2. Now select the number of pips profit you need to achieve before you exchange with
more lots. Let's say 200 pips (10 pips/day for 20 trading days in a month
average).
3. Now begin trading.1 mini lots (which is profit/loss 1 USD). You would just
grow to.2 lots after gaining 200 pips. When you gain 200 more pips profit
you would trade.3 lots etc.. .
4. Month 1: $1000 (200 pips x .1 lot = $200 ) Total: $1200
Month 2: $1200 (200 pips x .2 lots = $400) Total: $1600
Month 3: $1600 (200 pips x .3 lots = $600) Total: $2200
Month 4: $2200 (200 pips x .4 lots = $800) Total: $3000
.
.
.
5. If following the first month that your balance falls below $1200 you are back to 1 lot. And so decrease your lot everytime you drop below the previous increment level.
This is the egy discussed in ryan jones book..in more detail. What are the downsides of using this egy? What do you guys consider this egy? What egies are there which we talk or can use?
regards
gabroo