RISK MANAGEMENTDOC.docx
- 文档编号:29597314
- 上传时间:2023-07-25
- 格式:DOCX
- 页数:21
- 大小:29.71KB
RISK MANAGEMENTDOC.docx
《RISK MANAGEMENTDOC.docx》由会员分享,可在线阅读,更多相关《RISK MANAGEMENTDOC.docx(21页珍藏版)》请在冰豆网上搜索。
RISKMANAGEMENTDOC
RISKMANGEMENT
Asalways:
∙20/10positionsizingrules.
∙Maximumtraderiskis2%oftradingequity.
∙Dailystop-lossis6%oftradingequity.
∙Monthlystop-lossis10%oftradingequity.
∙Intradaytradelimit—3:
oAfter2winsor2losses,godosomethingelse(stoptrading!
).
oAfter1winand1loss,takea3rdtradeonlyifthedirectionissupportedbythehourlypriceaction.
20/10positionsizingrules:
∙BeforeIcantradeanewstrategyinareal-moneyaccount,Imusttradethatnewstrategyinademoaccount(1-lotposition)untilmylast20-tradeblockshowsacumulativeprofitandmorewinningthanlosingtrades;andmylast10tradesinthatblockalsoshowacumulativeprofitwithmorewinningthanlosingtrades.
∙Repeattheabovesteptradingthenewstrategyinareal-moneyminiaccount.
∙Foreachblockof20tradesthatshowsacumulativeprofitwithmorewinningthanlosingtrades,Imayadd1lottoatradeposition;butifthelast10tradesinanewblockoftradesfailtoshowacumulativeprofitorhavemorelosingtradesthanwinningones,Imustimmediatelyreducemytradepositionsizeby1lot.
Mytradingequityisthetotalvalueofcash,cashequivalents,andopenpositionsinmytradingaccount(s).
1.Calculate2%ofmytradingequityaftereachclosedtrade.ThisisthemaximumImayriskonanewtradeopportunity.Imayriskless!
2.Calculate6%ofmytradingequityasofthecloseoftradingeachday.Thisismydailystop-lossforthenexttradeday—hitthislevelofnetdollarlossduringthecurrentday’stradingandImustimmediatelycloseallopenpositions,andshutoffmytradingscreensuntilthenexttradingday.
3.Calculate10%ofmytradingequityasofthecloseoftradingonthelastdayofeachmonth.Thisismymonthlystop-loss—hitthislevelofnetdollarlossduringthecurrentmonth’stradingandImustimmediatelycloseallopenpositions,andrefrainfromtradinginareal-moneyaccountuntilthefirsttradingdayofthenextmonth.Continuingtotradeinademoaccountisencouraged.
ThereisstilllittleornoregulationofForexbrokers.Thisisaseriousrisk,andImanageitbyhavingmultiplebrokersandhavingonlyonetradingaccountperbroker;andbydepositorwithdrawal,startingeachnewmonthwithamaximum$10,000balanceineachaccount.
MoneyManagement
Moneymanagementisacriticalpointthatshowsdifferencebetweenwinnersandlosers.Itwasprovedthatif100tradersstarttradingusingasystemwith60%winningodds,only5traderswillbeinprofitattheendoftheyear.Inspiteofthe60%winningodds95%oftraderswilllosebecauseoftheirpoormoneymanagement.Moneymanagementisthemostsignificantpartofanytradingsystem.Mostoftradersdon'tunderstandhowimportantitis.
It'simportanttounderstandtheconceptofmoneymanagementandunderstandthedifferencebetweenitandtradingdecisions.Moneymanagementrepresentstheamountofmoneyyouaregoingtoputononetradeandtheriskyourgoingtoacceptforthistrade.
Therearedifferentmoneymanagementstrategies.Theyallaimatpreservingyourbalancefromhighriskexposure.
Firstofall,youshouldunderstandthefollowingtermCoreequity
Coreequity=Startingbalance-Amountinopenpositions.
Ifyouhaveabalanceof10,000$andyouenteratradewith1,000$thenyourcoreequityis9,000$.Ifyouenteranother1,000$trade,yourcoreequitywillbe8,000$
It'simportanttounderstandwhat'smeantbycoreequitysinceyourmoneymanagementwilldependonthisequity.
Wewillexplainhereonemodelofmoneymanagementthathasprovedhighanualreturnandlimitedrisk.Thestandardaccountthatwewillbediscussingis100,000$accountwith20:
1leverage.Anyway,youcanadaptthisstrategytofitsmallerorbiggertradingaccounts.
Moneymanagementstrategy
Yourriskperatradeshouldneverexceed3%pertrade.It'sbettertoadjustyourriskto1%or2%
Wepreferariskof1%butifyouareconfidentinyourtradingsystemthenyoucanleveryourriskupto3%
1%riskofa100,000$account=1,000$
Youshouldadjustyourstoplosssothatyouneverlosemorethan1,000$perasingletrade.
Ifyouareashorttermtraderandyouplaceyourstoploss50pipsbelow/aboveyourentrypoint.
50pips=1,000$
1pips=20$
Thesizeofyourtradeshouldbeadjustedsothatyourisk20$/pip.With20:
1leverage,yourtradesizewillbe200,000$
Ifthetradeisstopped,youwilllose1,000$whichis1%ofyourbalance.
Thistradewillrequire10,000$=10%ofyourbalance.
Ifyouarealongtermtraderandyouplaceyourstoploss200pipsbelow/aboveyourentrypoint.
200pips=1,000$
1pip=5$
Thesizeofyourtradeshouldbeadjustedsothatyourisk5$/pip.With20:
1leverage,yourtradesizewillbe50,000$
Ifthetradeisstopped,youwilllose1,000$whichis1%ofyourbalance.
Thistradewillrequire2,500$=2.5%ofyourbalance.
This'sjustanexample.Yourtradingbalanceandleverageprovidedbyyourbrokermaydifferfromthisformula.Themostimportantistosticktothe1%riskrule.Neverrisktoomuchinonetrade.It'safatalmistakewhenatraderlose2or3tradesinarow,thenhewillbeconfidentthathisnexttradewillbewinningandhemayaddmoremoneytothistrade.This'showyoucanblowupyouraccountinashorttime!
Adisciplinedtradershouldneverlethisemotionsandgreedcontrolhisdecisions.
Diversification
Tradingonecurrnecypairwillgeneratefewentrysignals.Itwouldbebettertodiversifyyourtradesbetweenseveralcurrencies.Ifyouhave100,000$balanceandyouhaveopenpositionwith10,000$thenyourcoreequityis90,000$.Ifyouwanttoenterasecondpositionthenyoushouldcalculate1%riskofyourcoreequitynotofyourstartingbalance!
.Itmeansthatthesecondtraderiskshouldneverbemorethan900$.Ifyouwanttoentera3rdpositionandyourcoreequityis80,000$thentheriskper3rdtradeshouldnotexceed800$
It'simportantthatyoudiversifyyourprdersbetweencurrenciesthathavelowcorrelation.
Forexample,IfyouhavelongEUR/USDthenyoushouldn'tlongGBP/USDsincetheyhavehighcorrelation.IfyouhavelongEUR/USDandGBP/USDpositionsandrisking3%pertradethenyourriskis6%sincethetradeswilltendtoendinsamedirection.
IfyouwanttotradebothEUR/USDandGBP/USDandyourstandardpositionsizefromyourmoneymanagementis10,000$(1%riskrule)thenyoucantrade5,000$EUR/USDand5,000$GBP/USD.Inthisway,youwillberisking0.5%oneachposition.
TheMartingaleandanti-martingalestrategy
It'sveryimportanttounderstandthese2strategies.
-Martingalerule=increasingyourriskwhenlosing!
This'sastartegyadoptedbygamblerswhichclaimsthatyoushouldincreasethesizeofyoutradeswhenlosing.It'sappliedingamblinginthefollowingwayBet10$,ifyoulosebet20$,ifyoulosebet40$,ifyoulosebet80$,ifyoulosebet160$..etc
Thisstrategyassumesthatafter4or5losingtrades,yourchancetowinisbiggersoyoushouldaddmoremoneytorecoveryourloss!
Thetruthisthattheoddsaresameinspiteofyourpreviousloss!
Ifyouhave5lossesinarow,stillyouroddsfor6thbet50:
50!
Thesamefatalmistakecanbemadebysomenovicetraders.Forexample,ifatraderstartedwithaabalanceof10,000$andafter4losingtrades(eachis1,000$)hisbalanceis6000$.Thetraderwillthinkthathehashigherchancesofwinningthe5thtradethenhewillincreasethssizeofhisposition4timestorecoverhisloss.Ifhelose,hisbalancewillbe2,000$!
!
Hewillneverrecoverfrom2,000$tohisstartiingbalance10,000$.Adisciplinedtradershouldneverusesuchgamblingmethodunlesshewantstolosehismoneyinashorttime.
-Anti-martingalerule=increaseyourriskwhenwinning&decreaseyourriskwhenlosing
Itmeansthatthetradershouldadjustthesizeofhispositionsaccordingtohisnewgainsorlosses.
Example:
TraderAstartswithabalanceof10,000$.Hisstandardtradesizeis1,000$
After6months,hisbalanceis15,000$.Heshouldadjusthistradesizeto1,500$
TraderBstartswith10,000$.Hisstandardtradesizeis1,000$
After6monthshisbalanceis8,000$.Heshouldadjusthistradesizeto800$
Highreturnstrategy
Thisstrategyisfortraderslookingforhigherreturnandstillpreservingtheirstartingbalance.
Accordingtoyourmoneymanagementrules,youshouldberisking1%ofyoubalance.Ifyoustartwith10,000$andyourtradesizeis1,000$(Risk1%)After1year,yourbalanceis15,000$.Nowyouhaveyourinitialbalance+5,000$profit.Youcanincreaseyourpotentialprofitbyriskingmorefromthisprofitwhilerestrictingyourinitialbalanceriskto1%.Forexample,youcancalcualteyourtradeinthefollowingpattern:
1%risk10,000$(initialbalance)+5%of5,000$(profit)
Inthisway,youwillhavemorepotentialforhigherreturnsandonthesametimeyouarestillrisking1%ofyourinitialdeposit.
3keystosuccessfultradingare:
1.Strategy
Youmusthaveaprovensetofrulestotellyouwhentoenter,whentoexitandwhentostayoutofthemarket.
2.MoneyManagement
Youmustpracticepropermoneymanagementbycontrollingyourrisk.Greattradersdonotriskmorethan3%oftheircapitalpertrade.
3.StateofMind
Youmustbedisciplinedandnotletemotionsruleyouwhenitcomestotrading.Inordertodoso,oneofthemosteffectivewaysthatIknowistohaveatradingplanandfollowitdiligently.
Lookssimplebutnoteveryoneisdisciplinetoaccomplishthat.
Youcandrivefearandgreedcompletelyonlywhenyou
1)Realizethattradingisabu
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- RISK MANAGEMENTDOC