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The idea is to give as risk a maximum of x% of the account peak measured during a specified period in the past (y hours). This could be for example 5% on the account peak of the last 24 hours. Then, on the basis of this “available risk” (in the following: „avRiskTot" ) and the currently open risk, the position sizes are determined for new positions. Each one gets as new risk a fixed percentage z of the avRiskTot reduced by the already open risk, e.g. 10%. “Risk” always means the loss measured in the account currency, which incurs when the price moves from the current price to the stoploss price which means in case of long positions that it falls and in case of short positions that it rises to the stoploss.
This calculation of the position size has the effect that during winning periods more and larger positions are opened and during loss-making periods the positions are slowed down or even stopped: If in the example above the account is at the maximum level of the last 24 hours, there are 5% of the account balance available for risk. If it has lost 3% from the maximum level, there are only 2% available for risk. If 5% are lost, for the time being no trading is possible. It restarts…
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Convallium avatar

good work and interesting thoughts)

orto leave comments
What is the
article about?
You will see results of an interesting survey of more
than 1500 traders done a year ago at a webinar which I attended. Such a large
number of participants in a survey makes the survey results rather valid and
credible. Please note traders were trading various markets not only forex.
The focus of the survey was to determine how much
money people had for trading and what their expectations were from trading in a
financial sense.
in a survey
BEFORE YOU WATCH THE VIDEO or read the rest of the article, please write your view/answers to the
following questions in the Comments section:How much do you believe traders have in their trading accounts on
How much profit do they expect to make per month in % terms?
version of this article is available on YouTube at
Note 1: If
clicking on the video link doesn’t work just copy the link into your browser.
Note 2: The
text below is not an exact transcript of the video.
survey question: How much money do you have?
This question addressed the overall financial
situation of the respondends i.e. in life in general, not just in trading.
Enough or …
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Furian avatar
Furian 24 May

greed and emotion alway put money out of our pockets. caoution. Thanks for any support. +1

belman avatar
belman 24 May

great success for the systematic and good trading strategy +1

samijoe avatar
samijoe 19 July

is this survey for european markets or world wide ?

RobertBric avatar
RobertBric 19 July

@samijoe I don't know the exact nationalities of the people present on that webinar. Based on the time of day when it was held I would venture to say that attendees were from US and Europe because it was night time in Asia and Australia.

PrinceChoco avatar

Very big article, good job

orto leave comments