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Thread: System Reviews by DailyFX Course Instructors
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  #169 (permalink)  
Old 06-24-2009, 02:10 PM
babytrader babytrader is offline
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Join Date: Jun 2009
Posts: 11
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Capital optimization, money management
Quote:
Originally Posted by Jeremy Wagner View Post
You do only want to use a very small portion of your margin. What's left over is referred to as usable margin. That is needed to cushion any future losses.
Thanks Jeremy.

I do understand the need to risk only a small portion of capital on any SINGLE trade. But I also want to put my money to work by having up to 90% of my capital spread across many little trades at any one time. I mean why should I tie down $100k in the account, but have only $1k working at any one time. Am I making sense?

Also, I am experimenting with the use of fixed ratio money management to channel capital to performing systems. Right now I have both ratio base and delta set to 100. Any thoughts on that?

And if you could please explain to me how to use the Fixed Fractional option. I find it confusing.

Thanks
Last edited by babytrader; 06-24-2009 at 02:55 PM..
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