New article Money Management Revisited has been published:
The article deals with some issues arising when traders apply various
money management systems to Forex trading. Experimental data obtained
from performing trading deals using different money management (MM)
methods is also described.
Trading activity can be divided into two relatively independent parts.
The first part called trading system (ТS) analyzes the current
situation, makes decision to enter the market, defines position type
(buy\sell) and moment of market exit. Amount of funds used in each deal
is defined by the second part called money management system. In this
article, we make an attempt to analyze some MM strategies depending on
changes in their parameters. Simulation method has been selected for
analysis. However, results of analytical decisions are also considered
in some cases. Tools of analysis are МТ4 trading terminal and Excel.