What is best to use for money management : fixed lot or % of balance capital per trade?

photo

 Quentin Depigny, Co Founder & Export Sales Manager at Wine International Axis

 Monday, May 6, 2013

I would like to have your opinions on money management between fixed lot or % per trade. So, what is the most : -profitable over a long term period ? -coherent way of choosing between fixed lot or % of balance per trade depending on a strategy/timeframe? -What you would choose, why and on what type of strategy? Please share your views and opinions. I personally prefer % per trade but it's an interesting topic to be studied.


More links

Print

2 comments on article "What is best to use for money management : fixed lot or % of balance capital per trade?"

photo

 Michal R., project manager

 Wednesday, May 22, 2013



I understood your question as grid system vs. fixed lot ... as I told before it depends on % of success. Grid system have 100% success (but one trade, but we don't speak about risks of grid) and here you need to consider only rounding. But as your example 10K to 0.30 lots it means this grid don't have many levels (many levels for me is more then 9) and so I suggest you to use % of capital only and not to play with semi-fixed models, because you won't solve anything there. So at 10K - 0.3 lot ... 11K - 0.33 lot ... 20K - 0.6 lot

It makes me impression that you are about to use grid as primary strategy, but if you use it as secondary (slow exiting or entering position) then its lot shall be related to primary strategy.


photo

 Quentin Depigny, Co Founder & Export Sales Manager at Wine International Axis

 Wednesday, May 22, 2013



@Michael, thanks for your comment.

So you are saying a % money management would be better? but that would lead to huge drawdowns and even a faster account crashing then a fixed lot...

And yes the grid strategy here would be the primary strategy, so how could you increase the fixed lot allocation according to your balance ? (let's forget numbers of 10k and 0.30 lot)

Please login or register to post comments.