Home The money management strategy to increase the size

The money management strategy to increase the size

Today I would like to cashbackforexbrokertroduce you to a money management strategy related to increase the size - perhaps it would be more appropriate to call it "live" money management strategy, because it contains more than simply increase the size of the hypothetical now have an account of 100, forex rebate club yuan, a short position, our goal forexrebateclub to make it more than 200,000 (doubled). First, divide the money in this account into 5 parts, each part is called a trading unit, which means that in each trading unit we have to invest $20,000 then we will complete the operation from 100,000 to 200,000 in 7 cashbackforexexnesss. If more than 10%, unconditional stop loss this 10% whether to include transaction costs according to personal preference, my personal recommendation is to include the following specific steps: Step 1: Step 1 operation only into a trading unit - 20,000 yuan at this time the total funds invested is 20,000 yuan, the proportion of positions 20,000/100,000 = 20% because the scheduled stop loss of 10% of the invested capital, so the maximum stop loss amount is 2,000 yuan, when the loss exceeds 2,000, unconditional stop loss at this time the stop loss amount accounted for the proportion of the total assets of 2,000/100,000 = 2% careful to do a good job of this 20,000 yuan single, when the profit reached 20%, that is, after earning 4,000 yuan, you can Enter the next step (at the end of step 1, the total assets have become 104000, relative to the initial total assets have been 4% profit) If this step of the operation does not go well, the final stop loss left the field, there are more than 90,000 left to do backing, you can use a trading unit re-entry step 2: in the case of step 1 has been a win, we began to add code now a new investment in a trading unit, at this time into the transaction of funds The total amount is 40,000 yuan, the proportion of the position is 40,000/104,000 = 38.46% The maximum stop loss amount is 4,000, the proportion of the total assets is 4,000/104,000 = 3.85% If the loss exceeds this value, still unconditional stop loss Note that the first step we have made a profit of 4,000 yuan, as long as the strict stop loss, the original capital will hardly be damaged when this operation cashback forex When this operation has made another 20% profit, i.e. 40,000 x 20% = 8,000, you can go to step 3 (at the end of step 2, the total assets have become 112,000, which is 12% profit relative to the initial total assets) Here we need to emphasize that if in step 2, a stop loss occurs and the total assets fall below 104,000 at the end of step 1, you must return to step 1 and only Put in a trading unit until the total assets are back above 104000, and then go back to step 2 step 3: If step 2 went well, now we continue to increase the size and add another trading unit, the total amount of money invested reaches 60,000 yuan, the proportion of the position is 60,000 / 112,000 = 53.57% The maximum stop loss amount is 6,000, the proportion of the total assets is 6,000 /Note that in step 2 we made a profit of 8000, and after the first two steps are completed, the total profit has reached 12000, as long as the strict stop loss, the loss of 6000 will not constitute any impact on the original capital When this operation makes another 20% profit, that is, 60000 × 20% = 12000, you can enter step 4 (at the end of step 3, the (At the end of step 3, the total assets become 124,000 and the profit is 24% relative to the initial total assets) As reminded in step 2, when there is a loss in step 3, if the total account assets fall back to between 104,000 and 112,000, return to step 2 and reduce the position amount to two trading units; if the stop loss is not determined or other unforeseen circumstances occur, the loss is serious and falls back to 104,000. Serious, back down to 104000 below, you can only return to the first step to start again (the next 4-7 steps when there is a loss similar to this treatment, not repeated) the following four steps similar to the above, in order to save space, I only write out the key data: Step 4: input 4 units, a total of 80000, position ratio 80000 / 124000 = 64.52%, maximum stop loss of 8000, accounting for 6.45% of total assets, 20% profit = 16000, then you can enter step 5 (at the end of step 4, total assets of 140,000, 40% profit) step 5: put in 5 units, a total of 100,000, position ratio of 100,000/140,000 = 71.43%, maximum stop loss of 10,000, accounting for 7.14% of total assets Step 6: Put in 6 units for a total of 120,000, with a position ratio of 120,000/160,000 = 75%, with a maximum stop loss of 12,000, accounting for 7.5% of total assets, with a profit of 20% = 24,000, and then enter Step 7 (at the end of Step 6, total assets of 184,000, with a profit of 84%). (At the end of step 6, the total asset is 184,000, 84% profit) Step 7: put in 7 units, a total of 140,000, position ratio 140,000/184,000 = 76.09%, maximum stop loss 14,000, accounting for 7.61% of the total asset, 20% profit = 28,000 So far our total asset has become 212,000, at this time has been 112% profit, to achieve the doubling of funds For example, in step 3, a total of three units are invested, which does not mean that you have to operate three different trading varieties at the same time, but only the amount of money that can be invested in three units at the same time - 60,000 yuan as for the 60,000 yuan you are The above strategy fully takes into account the actual market risk in trading, and each increase is implemented on the premise that the existing profit can fully absorb the risk of loss, and the initial stage is not a full position in a hurry, but a gradual and progressive, with the proportion of positions gradually rolling up from 20% to 76.09%, and 76.09 What is more interesting is that if we continue to do this, from step 8, the position percentage will drop from 76.09% in step 7 to 75.47%, and the stop loss percentage will drop from 7.61% to 7.55%, and each step thereafter will gradually drop when we finish step 10, we will have a net profit of 220%. In step 10, the position ratio drops to 71.43% and the stop-loss ratio drops to 7.14%. After testing a variety of data combinations, the peak values of these two ratios (position ratio and stop-loss to total assets) are mostly found in the last step of the doubling operation (here is step 7). This phenomenon may mean that after doubling your capital, you only need to hold a gradually smaller position and bear gradually smaller risks to maintain a certain level of return, which feels good. The disadvantage of this strategy is that, first of all, because of the small amount of capital invested at the beginning (only 20% of total assets in the first step), the speed of account appreciation is somewhat slow, and the original accumulation phase will take longer. In fact, if you think about it, even in business, most of the start is from a small start, not many people make a lot of money at the beginning, lets say you invest 100,000 to open a kiosk, you will expect to get rich in a few months? Not to mention that the risk of trading is much greater than running a kiosk, that you can accept, why cant you stand it in the stock market? On the other hand, 10,000 to earn 10% and 100,000 to earn 10% only on the percentage of profit is the same, a small amount of money to operate with less psychological pressure and risk, if in this case you can not do well, and what confidence to have a full position of funds are doing well? Secondly, when the total assets accumulated to a certain amount, if still in accordance with the amount of each trading unit 20,000 plus code, the efficiency of capital utilization will slowly decline, so the total account reached a certain size, you should redistribute the trading unit or adjust the amount of money in each unit In fact, it is because the start only put less money, the risk has also become smaller, especially for newcomers to the market soon, this The strategy can make the account survive long enough (unless in doing step 1, one after another lost 50 2000, the account was written off, huh?) There is also the account should be divided into how many trading units and how much profit percentage per step to enter the next step, I also did a test on a variety of combinations, if you want to take into account the ease of completion of doubling and capital security, the total assets If you want to balance the ease of doubling and the safety of your money, dividing the total assets into 4-5 units and moving to the next step after making 20% profit in each step seems to be the most ideal. If the number of units divided into two units, the proportion of positions in each step rises sharply, the risk of stop loss also rises, and in some cases, the required proportion of positions in a step will exceed 100%, resulting in the total assets are not enough to pay the required funds This strategy is applicable to both large and small accounts For example, you only have a small account of 20,000 yuan, you can divide into 5 units, that is, each unit of 4000, each step to complete 20 If everything goes smoothly, you can double your capital in 7 steps, making 112% profit and changing your capital from 20,000 to 42,400. If your account is as small as 10,000, you can consider dividing it into 3 or 4 units, also with a 20% progression ratio, but at this point you must take a slightly higher risk; or divide it into two units, so that you have to make at least 35% profit in each step. Finish at least 35% of the profits in each step to enter the next step, while bearing a very high risk Some friends may say: "understand the reason, but the above method is still a little slow, and, in case the bull market is over, miss a good opportunity is certainly not comfortable in the heart" If you think so, it does not matter, on the basis of this strategy, you can carry out For example, if the market is good, and you find a few very sure trading opportunities, then in step 1, under the premise of strict risk control, you can invest more money (no longer limited to the amount of money in a unit), when the end of the transaction in step 1, from step 2 and then increase the size of the way the trading unit is also possible. The above is only my personal analysis and opinion, interested parties can test different data combinations according to their own understanding and finally add a little knowledge: we may have seen or heard of a method of operation called "compound interest", which means, roughly, that If you have 100,000 yuan, once invested, earn 10%, the total assets become 110,000, and then the 110,000 invested, 10% profit, the total assets become 121,000 ...... At first glance, it seems like it only takes a few 10% to complete the doubling! This strategy is completely different from the one I introduced to you above. If you are also interested in compounding this strategy, you can try to study it and see if it is really as simple as it seems (dividend reinvestment in fund trading is also a compounding operation)

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