Using Fixed Percentage Risk:
Fixed % uses a more complicated and less apparent method for calculating how to break even. As shown in our illustration, if you take three losses in a row you won’t break even after your next win.
Fixed % is always dealing with the same % of your current balance. So as your balance decreases, the total dollar amount risked is less, and the total dollar amount gained with each win is reduced.
Thus, strings of losses require additional wins compared to the fixed dollar approach.
The fixed % method ensures against account erosion by showing the minimum win-rate needed to use each risk-to-reward ratio.
#BeginnerTrader# #IamAtrader# #AllforYou#
May Belle
暂无评论，立马抢沙发