Risk management

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D-3C0

Hi guys just wanted to discuss risk management. Beyond the concept of risking a certain percent and using a stop loss.

I'm talking about the more advanced concepts using mathematics n such. I.e. risk management subjects that are taught in college. Risk models, statistics etc.

Do these have applications in forex?

Wording of the question is very naive but I hope some people who are familiar with hr subject can chime in
 
Let's say you are trading five systems and for simplicity sake, each system risks two percent of your capital per trade. Some risk related questions I would be interested in are:

1. How correlated are the five systems?
2. Historically, how have the five systems performed when traded together?

Monte Carlo simulations can be beneficial but this article points out some pitfalls.
 
fan27 said:
Let's say you are trading five systems and for simplicity sake, each system risks two percent of your capital per trade. Some risk related questions I would be interested in are:

1. How correlated are the five systems?
2. Historically, how have the five systems performed when traded together?

Monte Carlo simulations can be beneficial but this article points out some pitfalls.
More...

Yes this is the sort of thing I think I am looking for. Will have a read
 
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