Quote:
Originally Posted by strongtower1
Would someone please tell me how these MM methods work in simple-pimple language? I want to keep some of the "10 Position Max." systems on a shorter leash, and short of the "chose a less agressive system by observing the past data", I need to make such an adjustment.
Also, I did put together a portfolio of >85% WIN and >50 RAR but with max. positions between 6 and 2....... guess what happened? NOTHING. For 48 hours not ONE trade. So I am back to the more aggressive ones.
PLEASE HELP!
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Fixed Lots : Each time a signal is sent to your account, a fixed trade of 10k or 40k or whatever you select is sent to your account.
Fixed Ratio : As you system produces a profit of x amount (Delta amount), then the trade size will increase by ratio base
Fixed Fractional : This figures the trade size by risking a specified portion of your account. You determine the % of your account risked. Also, you need to find out the distance of stop used by the signal provider.
It is common for some signal providers not to send a trade for a couple of days. Especially when you just add them to your portfolio. That is because they may have open trades you missed on. So it may take a few days for the trades to cycle through.
Also, remember that a system that places more trades also means you will have more in commission costs. Unless the signal provider is knocking it out of the park, the commissions could eat you up on an actively traded system.
I think that letting the account balance be the judge at the end of the month of a good system. An active aggressive system can provide the thrills, but if you are undercapitalized in your account for the system, you will also receive the chills.
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