Money Managment Tricks

Discussion in 'Risk Management' started by Smart Money, Jul 9, 2010.

  1. I wasted a year before I figured that out. I had a great system that works, but since it was a swing trading system, I had to watch really big swings in the wrong direction sometimes as it worked it's magic. I had a tendency to chicken out and locked in losses. Now I play smaller cycles and I can be patient enough for it to work. So far, so good.

    SM
     
    #11     Jul 10, 2010
  2. Then you are indeed smart if it took you only a year! It took me nearly ten! It is truly sweet not to worry about multivariate statistics but to cut right through the mathematics with simple backtesting on stop olosses and profit stops. Then you see in the shapes of the variations in the optimizations how the multivariate statistics coalesce into a single comprehensible phenomenon in the stops domain..
     
    #12     Jul 10, 2010
  3. Very well said Arthur, thats what Im talkin about!
     
    #13     Jul 10, 2010
  4. I think there is one trick that is easy to carry out. when you are losing and not sure if you wanna stop out. CUT HALF of your position. once you've done that. you win either way. it is easier to coupe with a wrongly executed stop mentally(since you still got your the other half), than seeing your account tanking at the full force.

     
    #14     Jul 10, 2010
  5. There is no trick or secret to MM just math and optimization. PM me and I will send you a vid on optimizing based on your positive expectancy model.
     
    #15     Jul 11, 2010