Quote:
Originally posted by yasirdxb
hii hani,
your calculations seems fantastic.
my current rules goes like this
no more than 10% equity in one trade.
no more than 20% equity in risk at any given time.
what do you think abt this set up. i think i have to learn a lot abt money management.
regards
yasir
|
The concept of money management is not to wave your account in a month or two meaning, not to put all eggs in one basket plus get the most out of market using your funds.
Based on that 2-4% of equity in one trade would be reasonable as most expert traders do.
System analysis like win/loss ratio, win probability and max drawdown ....etc. would bring more insight into Money Management plans
Good luck Yasser,
Hani