I have been developing an automatic trading system for FX using FXCM API, and so far, based on backtesting on my local database from Sep to Dec 2006, achieve profit 40% in PIP (in term of qty of trades is almost 50%). Testing on EUR/USD and USD/JPY, no scalping, no news. One of friend tell me to use Money Management to reduce loss and to boost profit so the 40% in PIP can turn into profitable. What is Money Mangement actually? I concern that Money mgt may not be able to be automated, hopefully can. --------- Next week will start paper trade with FXCM for enhancing the stability of the system.