What is the best money management system?

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Mrluck07
426
Mrluck07  

Example:

If the person is sure that he will win 70% of the trades, on 1:1 risk return, in this example the starting capital is 1000, and the goal is 1000000

question:

what is the best money management to reach the goal in the shortest amount of time?

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696
...  
Mrluck07:

Example:

If the person is sure that he will win 70% of the trades, on 1:1 risk return, in this example the starting capital is 1000, and the goal is 1000000

question:

what is the best money management to reach the goal in the shortest amount of time?

if you're looking for some formulas, you can find a lot of them in the book of Ralph Vince "Money management"

whroeder1
17943
whroeder1  

The larger the risk, the shortest amount of time. Kelly criterion - Wikipedia

The larger the risk, the more likely the risk of ruin. Use the Kelly and it's likely you will wipe the account. Could you stand a 80% draw down?

You don't want "the shortest amount of time."
Mrluck07
426
Mrluck07  
Andy Sanders:

if you're looking for some formulas, you can find a lot of them in the book of Ralph Vince "Money management"

Thanks, this autor's books looks very complicated, it seem like academy level
Mrluck07
426
Mrluck07  
whroeder1:

The larger the risk, the shortest amount of time. Kelly criterion - Wikipedia

The larger the risk, the more likely the risk of ruin. Use the Kelly and it's likely you will wipe the account. Could you stand a 80% draw down?

You don't want "the shortest amount of time."
Thanks, Kelly's formula seems very interesting, you say it can wipe the account, but on wikipedia it says that people on stock market use it
pipspider
131
pipspider  
Mrluck07:
Thanks, Kelly's formula seems very interesting, you say it can wipe the account, but on wikipedia it says that people on stock market use it
just because people on stock market use it, that doesn't mean you cannot get your a/c wiped..
EA-trader
651
EA-trader  

80 % of the time the market ranges , 80 % of trends become choppy ,and 80 % of  trading is mindsets and psychology., iNdicators., systems , methods ARE THE LEAST IMPORTANT AND MAKE UP < 20 %.


95 % + traders lose , due to psychology , so with these odds , you only want to risk 0.2 % of your account on every trade, then martingale after a series of losses.Expect 7 to 10 trades losing in a row , in real account.The brokers give you fills on demo , but not on real.Not 2 %  but 0.2 %.


In real trading , there is less than 20 % chance of making money , with just  one entry.

Anthony Garot
1822
Anthony Garot  

Another money management scheme to chase down is Optimal f.

Ralph Vince had an article of the difference between Kelly Criterion and Optimal f in this journal.

http://ifta.org/public/files/journal/d_ifta_journal_11.pdf

Mrluck07
426
Mrluck07  
Anthony Garot:

Another money management scheme to chase down is Optimal f.

Ralph Vince had an article of the difference between Kelly Criterion and Optimal f in this journal.

http://ifta.org/public/files/journal/d_ifta_journal_11.pdf

Great journal, one needs an iq of 150 to read it and understand, thanks
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