Effective Cost Technique
November 13, 2007 – 7:15 amI did not trade on Monday. No good setup, and it was public holiday in U.S.
Tony Juste from Fxstreet.com posted a presentation on money management in the forum of Fxstreet.com. It is called ‘Effective Cost’ Technique. The outline as follow:
- It is a defensive technique. It is based on the probabilities of success of a particular position initiated.
- It was built to prepare for the worst-case trading scenarios It allows for moderate profits while attempts to keep losses under control.
- Allows a trader to determine the stop loss level:
- Based on equity drawdown
- Based on technical triggers
Full presentation is available in this thread of the forum. You have to sign up a free forum membership to gain access though. Good stuff. Go and have a look.
From the desk of Tradergav.com
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Tags: FX, Money Management, Trading Journal
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