Money Managment question

Hi to all of you guys...
I was wondering if anyone follow the fixed ratio as his/her MM method....
Or everybody follow the fixed % (2% or 3%) ,of your accounts, as a maximun loss per trade?
Cheers

I don't risk more than x% on any position. On a normal account, I wouldn't risk more than 1-2%. But I have a small gambling account, too. And there I am willing to risk up to 5% per trade.

For this purpose, I wrote a script for Metatrader. I have a horizontal line that I rename to STOPLOSS. And when I start the script, it calculates the position size by the current market price and the stoploss line - and opens the order automaticaly.

After a while you get a feeling for how big a position can be, if you always have similar trading setups. So I open positions by hand and estimate the correct position size. If it's 0.8% or 1.2% instead of 1% that's ok for me.

Hi pnf-trader,

Thanks for your anwser...

As far as I've read all through the net concerning to that question, a lot of people say that a range between 2%-5% is Ok...

Apart from that, I would like somebody talks to me about if "fixed ratio", is an option to a good Forex MM, due to I've seen in many post, that "fixed ratio" doesn't pay attention to your stop loss for each trade but only to your total equity amount...

So you'd be trading the very same lots in a 30 pip's stop loss trade and in a 60 pip's one....???

Somebody can explain it better?

Thanks in advance

It seems that the most popular risk factor is 3%.

However, I think for those trading a small account for example a 1k account, this rule is broken all the time. Why? I try to give my answer

3% risk factor on a 1k account is just $30 risk per trade. If you play $1 a pip lot, you will only have a 30pips stoploss, and this is easily hit nowadays only to see it going your way afterwards. So u need a bigger stop,for that you will have to play a $0.10 a pip lot giving you a 300pips stoploss. The problem is you need a 100pips target profit in microlot in order to achieve what you get in 10pips in minilot . So after some time, most of us if not all will play higher lot without strictly regarding the 3% risk factor.

Just my opinion ..