Money Management
Formula: Capitalize-to-risk-ratio
A daily profit about +50.-$ needs a capitalize-to-risk-ratio around 1:10 without any kind of stop loss trading, instead of the risk-to-reward-ratio of 3:1 or 2:1 or so by trading the 2% stop loss rule.
So I have to manage the "equity" or the "free margin" position around 500.-$ in plus (10 times more then the daily win). My personality and my trading concept (say all the corpus rationale of my fx-experience) allows to make a risk definition over the daily win positions.
May be it sounds stupid in one form or another, for me it's an intelligent cognition, simple, efficient & profitable.
Kindest regards
FXcube
Formula: Capitalize-to-risk-ratio
A daily profit about +50.-$ needs a capitalize-to-risk-ratio around 1:10 without any kind of stop loss trading, instead of the risk-to-reward-ratio of 3:1 or 2:1 or so by trading the 2% stop loss rule.
So I have to manage the "equity" or the "free margin" position around 500.-$ in plus (10 times more then the daily win). My personality and my trading concept (say all the corpus rationale of my fx-experience) allows to make a risk definition over the daily win positions.
May be it sounds stupid in one form or another, for me it's an intelligent cognition, simple, efficient & profitable.
Kindest regards
FXcube