Maximum risk percentage | Psychology and Money Management


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Maximum risk percentage

  #11 (permalink)

Potomac, MD
 
Trading Experience: Intermediate
Platform: ToS, NT
Broker/Data: TD Ameritrade, IB
Favorite Futures: QM/CL
 
reno57540's Avatar
 
Posts: 161 since Oct 2012
Thanks: 120 given, 213 received


mattz View Post
Traders ask me the same question that you posted a lot, and my answer is always focused on their psychology. Can they handle the more significant drawdowns?

I find that any transition you do has to be somewhat gradual, so in your case, where you have enough risk capital, open an additional account and trade $25K per one contract. Trade that for six months, and that experience would be more insightful than any advice given. You conquered a winning method, and that is an achievement. Please don't rush to become another statistic because it's better to keep the pace that you are on and win than rush and....you know the rest. You have been there before.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

Using my method, trading 1CL per $25k equates to a 4% max loss per trade, which is what I am considering doing. I currently trade 1CL per $50k.

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