文档介绍：Money Management Strategies
for Serious Traders
PRESENTED BY DAVIID C. STENDAHL
The Importance of Money Management
Traders can typically describe the methods they use to initiate and liquidate trades. However,
when forced to describe a methodology for the amount of capital to risk when trading, few
traders have a concrete answer. Some make vague references to experts that mended
risking one or two percent of portfolio equity on any trade. Others rely on intuition to determine
when to increase position size on a particular trade, always risking different amounts.
Experienced traders learn that as important as it is to have an effective method to determine
when to trade, it is equally important to develop a methodology to determine how much to risk. A
trader that risks too much; increases the chance that they will not survive long enough to realize
the long run benefits of a valid trading strategy. However, risking to little creates the possibility
that a trading methodology may not realize its’ full potential. Therefore, while a positive
expectation may be a minimal requirement to trade essfully, the way in which you exploit
that positive expectation will in large part determine your ess as a trader. This is, in fact, one
of the greatest challenges for traders.
At RINA Systems, we have had the fortune of working with many experienced traders, and in that
process we became increasingly aware of the need for sound methods for applying money
management strategies. In fact, it seems that as traders reach a certain level fort with a
system they begin to realize that a sound money management approach is missing from their
trading strategy. Our work in this area has led us to research several strategies for determining
position size and ways in which to add to, decrease, and stop out positions. Many of these
strategies are well known and readily available in the public domain and others are hybrid