Risk/reward vs scaling out

Discussion in 'Risk Management' started by maildigger, Mar 23, 2008.

  1. Let's assume a strategy that has the following result after +100 trades:

    35% winners (hit +10, no further data about hitting higher targets)
    35% breakeven (hit +4 but not +10 & returned to entry)
    30% losers -4

    What would we the best moneymanagement for this strategy? All out at +10 or considering taking some early scale outs to cash in some $$$ from the breakeven trades.

    It will lower the average risk/reward ratio but psychologically this could be a benefit. Any ideas about this?
     
  2. Pita

    Pita

    all out +4 MIT, sometimes you will get 4 sometimes 3. More than that cannot be said from the little you explained and if you think this method will hold up this is the way to trade it. Size according to the largest drawdown.