We all know that trading is a game of probability, we cannot have a 100% winning rate.
=> Therefore, it will be better when we have a strict way of managing capital.
This is the way I often use when managing my capital.
I manage according to the Risk/Reward ratio. There are many theories about this method on Google, you can find and read through. Here I'm just talking about how simply I apply it.
I mainly trade futures. For each order I will use 10% of my capital. And my maximum stop loss ratio is 30% (20% for high risk orders). If applied like this, if that order loses, I only lose 3% of my total capital. If I win I usually take 3R.
For example:
In total, I still made a profit of 10R. 50% win rate is quite low but still win 10R.
That is the power of capital management!!
Enjoy!!
DYOR
=> Therefore, it will be better when we have a strict way of managing capital.
This is the way I often use when managing my capital.
I manage according to the Risk/Reward ratio. There are many theories about this method on Google, you can find and read through. Here I'm just talking about how simply I apply it.
I mainly trade futures. For each order I will use 10% of my capital. And my maximum stop loss ratio is 30% (20% for high risk orders). If applied like this, if that order loses, I only lose 3% of my total capital. If I win I usually take 3R.
For example:
- The win rate is 50% (pretty low)
- Place 10 orders
- Win 5 orders: 3R * 5 = 15R
- Lose 5 orders: 1R * 5 = 5R
=> Profit: 15R - 5R = 10R
In total, I still made a profit of 10R. 50% win rate is quite low but still win 10R.
That is the power of capital management!!
Enjoy!!
DYOR
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.