Ok guys, I am posting a picture of the trades that my newfound system generates. The thing is, I'm having trouble figuring out the best money management technique that will reduce risk quickly, and allow me to maximize profit taking. Majority of the time (80-90%), my position will travel "at least" the distance of my risk. So, at 1R do I... Take half off the table so that I'm sitting at B/E in a worst case scenario? I feel like it's a good way to reduce risk, but it also reduces profit potential and what about the times that never make it to 1R? Then I lose the full amount. Also, many times the trade will move 10-20 times risk. That's HUGE!!! But, how do I take profits along the way. You'll see in the picture that if I wait until the next signal, I might only walk with 2-3R. Do I take profits at specific intervals, etc? I'd appreciate any advice you can offer, because I feel that with the right trade/money management, I can extract great profits from the markets. Thanks!!!
I figure the R:R ratio is there... but I'd like to have a fixed trade management system. I think it would help to have no emotions involved whatsoever. Just wait for the signal, place the trade, set stops and targets, and let the trade play out. As you can see this is a longer term system, although it works on all stocks, futures, and forex on any timeframe. I'm starting to realize exactly how important money management is to a system. I just want to catch as much of the move as possible. People drool over a system that can produce a 1:5 R:R ratio. Like I said, I've seen my system catch 1:30 R:R. Hmmm... what a delima...
Ok, thanks. That's not really what I'm looking for though. I'd like a system that predetermines at what point I will take profits, move stops, etc. Going back to the b/e portion.... Is it advantageous for me to sell half my position when I've made 1X risk? It means that there is no more risk on the trade, but it also cuts my profit potential in half. See what I'm saying? Is it better to have multiple b/e trades in a ranging market than to get stopped out with full positions? It's kind of a trade off. I'd like to hear other traders methods of profit taking/stops...
I'm not much help being discretionary trader. Intraday-full position on entry, full position on exit. Longer term trades- add to positive positions.