The Bible of Money Management

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Greenings 

I'd like to talk about money management and I'm keen to gain new perspectives.

I trade the daily chart. What I do is, I pull up the chart and I've built an EA that opens a position on the minimum lot size and then places a stop loss 1.5 x the ATR.

From there I check the value of the stop loss, and if it's greater than 2% of my account I walk away, if it's less than 2% of my account then I can trade.

Depending on how far it is from 2% of my account determines if I can increase the lot size, but only until the SL is worth 2% of my account.

Under these constraints I can only trade Micro Pairs with my broker. My account size is $100, I know I could just YOLO the money but this isn't wall street bets. So I'd like to know:

1) Do you know any other markets where I could trade given my 2% rule

2) What rules do you have in place that help you manage your money? 

 

Money Management


The forum

  1. MM (money management) calculation, indicators, discussion, tools: calculate your lot size and so on. Original thread with several versions.
  2. MoneyManagement EA is on this thread: it shows you market information and money management on the chart. 
  3. Forex Money Management, Part 1 - good small thread
  4. Useful money management expert - the thread with the EA 
  5. Stop Your Mind From Causing You to Take Profits Too Soon - the post with the educational video 
  6. Money Management: How to Determine an Initial Stop Level - the post with the educational video 
  7. Why Most Traders Lose Money and The Solution - the post with the educational video

The articles

  1. Statistical Verification of the Labouchere Money Management System
  2. Money management in trading - 
  3. Functions for Money Management in an Expert Advisor 
  4. Fallacies, Part 1: Money Management is Secondary and Not Very Important 
  5. MQL5 Wizard: How to Create a Risk and Money Management Module 
  6. Money Management Revisited 
  7. Cross-Platform Expert Advisor: Money Management 
  8. Limitless Opportunities with MetaTrader 5 and MQL5 
  9. Money Management by Vince. Implementation as a module for MQL5 Wizard

CodeBase

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For a $100 account, consider using a "cent" account instead of a regular account. That will make your account seem like it has a balance of $10000 and will make it easier to apply your 2% risk with larger stops.

Alternatively, If you wish to trade with a real $10000 account instead of a cent account, then consider working with a "prop firm". You will however need to undergo "challenges" before they fund the account for you. You will have to do your own research about them. Recommendations on brokers (or prop firms) are not allowed on the forum.

 
Sergey Golubev #:

Money Management


The forum

  1. MM (money management) calculation, indicators, discussion, tools: calculate your lot size and so on. Original thread with several versions.
  2. MoneyManagement EA is on this thread: it shows you market information and money management on the chart. 
  3. Forex Money Management, Part 1 - good small thread
  4. Useful money management expert - the thread with the EA 
  5. Stop Your Mind From Causing You to Take Profits Too Soon - the post with the educational video 
  6. Money Management: How to Determine an Initial Stop Level - the post with the educational video 
  7. Why Most Traders Lose Money and The Solution - the post with the educational video

The articles

  1. Statistical Verification of the Labouchere Money Management System
  2. Money management in trading - 
  3. Functions for Money Management in an Expert Advisor 
  4. Fallacies, Part 1: Money Management is Secondary and Not Very Important 
  5. MQL5 Wizard: How to Create a Risk and Money Management Module 
  6. Money Management Revisited 
  7. Cross-Platform Expert Advisor: Money Management 
  8. Limitless Opportunities with MetaTrader 5 and MQL5 
  9. Money Management by Vince. Implementation as a module for MQL5 Wizard

CodeBase

============

Thank you for this comprehensive and well organised lay out. You've given me more than I could ask for, I'm grateful.

 
Fernando Carreiro #:

For a $100 account, consider using a "cent" account instead of a regular account. That will make your account seem like it has a balance of $10000 and will make it easier to apply your 2% risk with larger stops.

Alternatively, If you wish to trade with a real $10000 account instead of a cent account, then consider working with a "prop firm". You will however need to undergo "challenges" before they fund the account for you. You will have to do your own research about them. Recommendations on brokers (or prop firms) are not allowed on the forum.

Fernando you are a constant source of light, thank you for that. I didn't know about cent accounts at all before you mentioned them to me. A cent account fits my needs like Cinderella's glass slipper, cheers to you!

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