Fixed-Variable Money Management

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hedgeitall
Trader
Posts: 20
Joined: Mon Dec 12, 2011 4:42 am
Location: Brisbane, Australia

Fixed-Variable Money Management

Post by hedgeitall »

This is a pretty simple idea that I have been using for a while and it generally proves to be better then the general MM function based on account balance/equity.

if (MoneyManagementLots>=HistoricalLots)
{
Lots=MoneyManagementLots;
}
else
{
Lots=HistoricalLots;
}

MoneyManagementLots = optimized lots based on account balance/equity.
HistoricalLots = Largest Lots Traded (use check history routine to find largest lots)

The risk is the same as trading a fixed lot, with the advantage of optimized lots.
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