Experience has taught me that it doesn't matter how good of a strategy you have, in the long if you have no money management in place your bound to fail.
Money management can turn a strategy that has a probability of 50% winning into being very profitable. The same is true for Expert advisers.
HOW TO USE MONEY MANAGEMENT EFFECTIVELY:
Suppose you have a breakout strategy using Donchian channels. The first signal from the channel is usually the best. The right conditions are met and your candlestick moves the channel by a pip.
Trader 1 / EA 1
Take profit 30 pips Stop loss 30 pips Lot(0.6)
Profit 180$ Loss 180$
Trader 2 / EA 2
Take profit 30 pips Stop loss 10 pips Lot(0.6)
Profit 180$ Loss 60$
Which trader will have better results? This is why money management is twice as important as a trading strategy. Do not ignore this or you will have to learn from experience!
