Suppose you are given a 70% accurate strategy (r:r = 1:1)
How can you decrease your risk further?
Would you choose pyramiding?
Would you choose clustering?
Would you choose some-sort of averaging?
Would you split up your initial entry-amount & re-enter at better prices(pullbacks)?
Which risk-management technique will be most suitable for this case? (taking probability & fixed r:r into consideration )
What are some of the most common position-sizing strategies to decrease risk?
The purpose of this discussion :
Its hard to increase probability of most "mechanical systems" , after a certain point. If you join a 70% accurate strategy with another 70% accurate analytical-stuff, the systems probability rather gets decreased. So most strategies can't be further improved via more & more technical-analysis.
Then, money-management is the only way left to "decrease the risk" which means improvement to the system (if there's any room for it).
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How can you decrease your risk further?
Would you choose pyramiding?
Would you choose clustering?
Would you choose some-sort of averaging?
Would you split up your initial entry-amount & re-enter at better prices(pullbacks)?
Which risk-management technique will be most suitable for this case? (taking probability & fixed r:r into consideration )
What are some of the most common position-sizing strategies to decrease risk?
The purpose of this discussion :
Its hard to increase probability of most "mechanical systems" , after a certain point. If you join a 70% accurate strategy with another 70% accurate analytical-stuff, the systems probability rather gets decreased. So most strategies can't be further improved via more & more technical-analysis.
Then, money-management is the only way left to "decrease the risk" which means improvement to the system (if there's any room for it).
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