Looking for mentor in money management

Discussion in 'Risk Management' started by c.chugani, Oct 15, 2013.

  1. Dear all,

    I currently am devising a <I>extremely simple</I> swing / position trading strategy and experimenting with various forms of scaling (in and out) to determine overall profitability and risk in different scenarios.

    Could someone PM and / or share some insights as to which method has worked best with you for trading trends ?

    Many thanks in advance,

  2. Do hold/reversal type trading.

    Allow yourself to trade with partial fills; the limit is about five times the market capacity.

    Trend trading works best. You must monitor and analyze, however; trend following does not work.

    Do your reversals when each trend fails as overlap begins to get the full offer of the market.
  3. You would need to explain more about how you trade. As an example if you are a PA trader then you will probably use PA to get you out of the trade it got you in to. I'm not sure that money management is the right way to look at scaling. To me MM primarily revolves around how much you are willing to risk on a given trade and how many hits you should take before you say to yourself that tomorrow is another day and it is easier to begin with a clear head. For me that is if I have three losers in a day. I don't care if I have had some nice winners three strikes for me and I'm out. If it was good enough for Mays and Mantle it's good enough for me.

    I'm older than most here so I have had more time to build capital in entrepenurial endevors. I trade only CL and use both the 5 minute and 800t charts. I have the luxury of trading a small fraction of 1% of my liquid net worth and that is really all the MM I need. BTW ... I don't scale, I don't vary size, I don't want to think. I'm in or I'm out.