question about money management -
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thread: question about money management

  1. #21
    Junior Member Supersoco2's Avatar
    5
    Hi, ive red this material somewhere but cant find it again so maybe people here know exactly what I mean / asking about. Somehere I red that if you lose, you should be in smaller pos dimensions, and if you win you should incrase? How can this work in practice? Say that my typical pos size is 2%, and if I shed one time that the next transaction will only bee in 1% and if I shed that the next will be 0,5? And if that's a win I go around 1% again? And it this is the machine, does it have some name so I can google it? I hope you get exactly what iam thinking about, sorry for...
    Hi Rgrg,

    According to my insight to Currency Market egies I will inform you why such management just doesn't do the job.
    When You test a egy together with Strategy Tester you'll get really confused because no matter how you'll tune the parameters after You will be profitable,while another time You will be loosing money with the same par.
    I was doing the exact same.
    First I couldn't know why it happens this way, but after I learned programming in mql I developed lots of indiors only for analyzing egies, and I found out exactly what I before felt intuitionally;
    Many of egies work well for a certein period of time, and then they change and have a tendency to loose very quickly.
    So it might happen that if You close winning transactions 1x, 2x, 3x, 4x . . 8x... there might be only one or two transactions ([lots of pips maybe not in your favor ] * [your increased amount of cash]) which will take a whole lot more income than You actually gained during previous winning transactions.

    Regards!

  2. #22
    quote Its not a weapon ! Its common sense rather than being greedy. The majority of the 95% that neglect in Forex think they are going to become rich from it. If you put $1000 in the bank and get a yield of 3 percent you think that's a great thing. But in Forex folks look for returns of 100 percent Common sense (should) inform you that's MADNESS
    Most traders do neglect in start however those who let go off these losses, learn from them and move forward typically get the success also however the point is that placing cash in a bank for 3 percent per annum and trading money in forex are two different things where I believe it will not make us rich right over the evening but atleast permit us to make excellent returns on our invested cash as compared to deposit banks.

  3. #23
    Junior Member Lorena_sfc's Avatar
    25
    quote Many traders do fail in start however those who go off those losses, learn from them and move forward usually get the achievement also however the point is that putting money in a bank for 3% per annum and investing in money in forex are two unique things where I believe it will not make us wealthy right over the night but atleast allow us to make good returns on our invested money when compared with the deposit banks.
    Which option do you want most ? Putting money in bank or Foex trading and why ?

  4. #24
    Hello, ive red this material somewhere but cant find it again so maybe folks here understand what I mean / asking about. Somehere I red that if you lose, you should be in smaller pos size, and if you win you should incrase? How can this work in practice? Say that my standard pos size is 2%, and if I shed one time that the next transaction will only bee in 1 percent and if I shed that the second will be 0,5? And if that's a triumph I go up to 1 percent again? And it this is the system, does it have some name so I can google it? I hope you get what iam thinking about, sorry for...
    If you're risking 1% ... the calculated lot size will adapt itself based on your balance/equity at the time you're calculating it.

    In case balance/equity has increased, 1 percent will give you a larger lot size.

    In case balance/equity has decreased, 1 percent will give you a bigger lot size.

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