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Hotch
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How Much You Risk Your Account Per Week?
Hotch replied to Yacob Hassan's topic in Risk & Money Management
Really, I think most of you are missing the point. How much you should risk isn't a constant, it depends on how good you are at trading. If you're trades are good, then you should risk more, it's a simple concept. IF you are consistent, then you should use your Kelly value, adjusting it for Risk of Ruin. Losing streaks. Sure, you'll have em, but you'll also have winning streaks. It's all part of the game. Mainly the thing that stops people risking a larger amount is FEAR. You shouldn't up your risk and try to live with the fear, but just take note of what you do, look back and see what could of been, gain confidence slowly, and you'll get there. If you're not consistent, then OBVIOUSLY you should risk a small amount...until you become consistent, then you can MATHEMATICALLY work out what you should be doing, for most it will be more then 2%. Kelly criterion - Wikipedia, the free encyclopedia