Money management and distribution schemes for risk diversification in trading of EAs Setslav_S1.
For a start and for a complete understanding, I will briefly describe the differences between each of the used Project (style) in the trading of Setslav_S1 EAs. Just want to note that Project-1.set and Project-3.set are the same styles, only with different risks. Project-1.set uses Risk = 3 (this risk value allows several robots to be used on one account), Project-3.set uses Risk = 5. Thus, to diversify risks and not to repeat trade styles, 4 different accounts are enough.
Now, what are the differences of styles:
- Project-1.set: - conservative (short-term, intraday) style. The default settings are used. It uses individual stop loss for each order with a risk of about 2% of the deposit, while the profit is summed for all orders of one strategy. No more that 2 orders are used per strategy.
- Project-2.set: - this is an updated, mixed style, which includes both intraday as well as long-term trade. A common stop loss and a common profit are used for all orders of the same instrument. The Loss / Profit ratio is 1.6, with the default settings for this project, the loss will be fixed when you reach -8% of the deposit for all orders of one strategy, the profit will be fixed when you reach + 5% of the deposit for all orders of one strategy. This project uses a sophisticated setting using TrailingStop, opening orders in the positive area, opening orders in the negative area, the step, the time between the orders. The advantage of this style is that even loss-making positions on the strategy can be compensated by a series of profitable orders opened at another time.
- Project-3.set: - analog Project-1.set, only with increased risk.
- Project-4.set: - trend (long-term) style. This style is designed to fix a large profit in the trend movement of the traded instrument. The level of profit-taking has been increased 3 times. Uses a very complex setting using TrailingStop, opening orders in the positive area from the previous one, increased step and time between orders. The stop-loss level for each order is individual (separate), with a risk of about 3.5% of the deposit, with the profit is summed for all orders of one strategy.
- Project-5.set: - medium-term style. A common stop loss and a common profit are used for all orders of the same instrument. The Loss / Profit ratio is 3.0, with the default settings of this project, the loss will be fixed when -6% of the deposit is reached for all orders of the same strategy, the profit will be fixed upon reaching + 2% of the deposit for all orders of one strategy.
In fact, every adviser in the Setslav_S1 series consists of 4 absolutely different Expert Advisors trading in different styles with different risks and on different instruments
Possible Money Management schemes and allocation by accounts:
Sheme №1: Here we use a even distribution of money on accounts of different styles. You need 4 different accounts.
Sheme №2: Here the mixed distribution of money on accounts is used. We use the most part of means in conservative style, the rest we distribute equally in more risky. 4 different accounts are necessary.
Sheme №3: Here you use the individual distribution of funds to one account for a certain project (style) chosen by you, with an established (suitable for you) risk.
- In any of the proposed schemes, you can use several EAs (even all 4) in one account for one style.
- All EAs / Systems / Projects (styles) are quite stable, so they allow you to trade with a low initial deposit - one account has enough $ 500, even if you use all 4 robots on the account.
- I do not recommend using one expert in one account with different settings (Projects.set), ---- on one account: either one robot with one style, or several robots in one style.
I am always open to communication:
- if you are a beginner,
- do not know where to start,
- or you just need my help in setting up and installing systems,
Any questions, just contact me