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The amount you should risk is directly dependent on the distribution of your trade results, wins & losses. Use Monte Carlo to investigate.
The amount you should risk is directly dependent on the distribution of your trade results, wins & losses. Use Monte Carlo to investigate.
Crises are more extreme and more frequent than economists seem able to predict. Mandelbrot was onto it.
Crises are more extreme and more frequent than economists seem able to predict. Mandelbrot was onto it.
Use Monte Carlo to investigate your future trading career range of outcomes - especially use it for how you approach risk management.
The universe of your potential future outcomes will surprise you. It did for us.
Use Monte Carlo to investigate your future trading career range of outcomes - especially use it for how you approach risk management.
The universe of your potential future outcomes will surprise you. It did for us.
Ed Seykota had some good advice in "Market Wizards" by Jack Schwager on this.
You should pay it some heed. Perhaps it'd be best to model it using Monte Carlo to define how much.
Ed Seykota had some good advice in "Market Wizards" by Jack Schwager on this.
You should pay it some heed. Perhaps it'd be best to model it using Monte Carlo to define how much.
From the Trading Coach, Chris Shea.
From the Trading Coach, Chris Shea.
Use Monte Carlo.
The population of your future trades can tell you a lot of what TO do, and NOT to do.
Use Monte Carlo.
The population of your future trades can tell you a lot of what TO do, and NOT to do.
"I try to keep very conscious of the idea that I have to listen to myself".
Good advice.
"I try to keep very conscious of the idea that I have to listen to myself".
Good advice.
And don't stay on the wrong side of them. Without a protective stop financial ruin may result.
And don't stay on the wrong side of them. Without a protective stop financial ruin may result.
Be independent.
Good advice👇
Be independent.
Good advice👇
And trade less, being more selective.
From "Market Wizards"👇
And trade less, being more selective.
From "Market Wizards"👇
Chris Shea, the trading coach, recommends a maximum of between 5 and 9. Good advice. 👇
Chris Shea, the trading coach, recommends a maximum of between 5 and 9. Good advice. 👇
🌟 Always quantify your risk.
🌟 Always have a protective stop in the market good till cancelled.
🌟 Always quantify your risk.
🌟 Always have a protective stop in the market good till cancelled.
William O'Neil thinks so too.
William O'Neil thinks so too.
Do you use it when allocating % risk to your trades. It may not be a good idea.....
It didn't work out for LTCM.
Do you use it when allocating % risk to your trades. It may not be a good idea.....
It didn't work out for LTCM.
What's that trading plan of yours say?
Good advice from a wizard - trade smaller - don't do the opposite! 👇
What's that trading plan of yours say?
Good advice from a wizard - trade smaller - don't do the opposite! 👇