Risk management techniques
- Thread starter Lee-me
- Start date
Never change your trading size according to how confident you are in your position's profitability potential.
Don't hold losing trades!!
Small accounts swept periodically. Max position on the initial, take partials as it moves in favor.
Reduce position size with each successive loss. Max loss per day, Daily TP reached, stop trading.
Different accounts have different TFs, separate scalping, swing trading accounts vs long term investments.
Different accounts different strategies. Some stay dormant for long terms of time.
Higher risk accounts are smaller.
unless they have VERY VERY high potential of turning into profit.
My Fed rate decision trade became profitable on Friday btw. 
Risk management wise …
I take a small fraction of my bankroll to the casino then I use another fraction for each bet depending on the cash at hand (+- PnL)
I enter the trade with half the full size and if it works I double down (Full size).
Example …
Bankroll is 10,000
Take 10% to the casino (1,000$)
Bet 20% on each bet,
Let’s say I already lost 200$ today,
1,000 - 200 is 800 x 0.2 is 160
Split in two is 80$
If it doesn’t work then lose 80$
If it works then double down, risk 160$
…
I take a small fraction of my bankroll to the casino then I use another fraction for each bet depending on the cash at hand (+- PnL)
I enter the trade with half the full size and if it works I double down (Full size).
Example …
Bankroll is 10,000
Take 10% to the casino (1,000$)
Bet 20% on each bet,
Let’s say I already lost 200$ today,
1,000 - 200 is 800 x 0.2 is 160
Split in two is 80$
If it doesn’t work then lose 80$
If it works then double down, risk 160$
…
Last edited:
LOL....I do exactly the opposite.
Based on certain market parameters, my size varies from one day to another.
Profit expectancy is not the same for each day and there are ways to measure it.
I saw that. Congrats.unless they have VERY VERY high potential of turning into profit.
I'd have been sitting with a small loss.