2% Rule

Discussion in 'Risk Management' started by elitetradesman, Nov 5, 2013.

  1. Sergio77

    Sergio77

    The 2% is the amount to risk, not the amount to invest. Obviously one does not open a store every day so there the utility function is different and the decision is based on other factors, like location, rent, etc. But in mid freq trading the 2% rule is reasonable because losses can accumulate fast. I risk 1% and I would like to go down to half of a percent.
     
    #21     Mar 27, 2014
  2. newwurldmn

    newwurldmn

    Why don't you go down to .5% if that's the risk you want to run ?
     
    #22     Mar 27, 2014
  3. elt4x

    elt4x

    Whats u guys opinion about 2% risk compounding. Do any of u guys apply that?
     
    #23     Apr 25, 2014