firstbrain

@ DugDug: I don't think that experimenting is not the right way to learn MM. Read some books and then apply PROPER MM to your trading. AND: you still first have teo develop a winning strategy!! That's more important than experimenting with MM. There where bright brains that already discovered how to do it right, why to waste time on it? I don't think one has to be convinced to use proper MM, the math behind stands for itself. If u don't use it you lose. BIG. Again there is a difference between earning 70.000 and more than 600.000 with the IDENTICAL trades, isn't it? That's what I learned in my 26 years of trading; it's my personal opinion and experience. Take it or leave it, but don't take it personal DugDug, ok?

I would acknowledge that MM is a kind of holy grail in trading and investing. Still about 98% of the trading community isn't using proper MM. Often they tell u s/th about trade management and think they use MM which they don't. If you don't use proper MM u'll lose in the end, period. If u use it u at least have a chance to survive and if u have a winning system/strategy then you will get really wealthy u cannot avoid it. So if you have a system with the RR ratio u described that would be great, add proper MM and it will be a holy grail. If one would really want to dig into this there is also another book out there which I would recommend: Van K. Tharp - Trade Your Way to Financial Freedom. After reading it u'll never trade w/o MM.

If u understand MM as a tool for getting geometric growth on your account then I would suggest "The Trading Game" by Ryan Jones. It's hard to read and to understand but if u make it (I had to read it 3 times until I got a grasp on it) u'll be ahead of the other 98% of the crowd. It shows the difference between making USD 70.000 (w/o MM) and USD 600.000+ with MM doing the exact same trades.