money management stuff

Discussion in 'Risk Management' started by Runningbear, Oct 29, 2002.

  1. what kind of money management formula are you guys using?

    I like the fixed ratio method. formulua is as follows...

    Current Balance + (#contracts * Delta) = next increase in contracts.

    Depending on how aggressive or conservative you want to be, you simply change the delta in the following formula accordingly. A smaller delta is more aggressive while a larger delta is more conservative
     
  2. Amkeer

    Amkeer

    thanks for the link!:)
     
  3. mcdtrd

    mcdtrd

    3 to 1 ratio works. 7%loss max
     
  4. v12

    v12

    Just cut the losses short.
     
  5. m_c_a98

    m_c_a98

    That has nothing to due with money management/position sizing.