Maximum risk percentage | Psychology and Money Management - futures trading strategies, market news, trading charts and platforms

Psychology and Money Management

This forum is where successful traders spend most of their time and where struggling traders never visit. The psychology and money management forum is where you learn to become a profitable day trader


Maximum risk percentage

  #4 (permalink)

Legendary Market Wizard
Chicago Illinois USA
Trading Experience: Advanced
Broker/Data: IB, ToS
Favorite Futures: /ES, US Equities/Options
wldman's Avatar
Posts: 2,744 since Aug 2011
Thanks: 1,435 given, 5,024 received


I don't have a forceful valid objection to the method that you outlined.

If you want to limit max dollar draw down per day, does that imply that you do not carry positions. I wonder if you decreased the number of ticks against you and increased the number of contracts traded if you would be able to swing and give your winners room to run?

The other thought would be to adapt some type of element that takes into consideration volatility, especially in /CL. Perhaps 2X the average true range of whatever period you consider your focus?

Best of luck.


Visit my futures io Trade Journal Reply With Quote
The following 5 users say Thank You to wldman for this post: