QTusers.com - QuoteTracker Discussion - How to never get an account wiped out?

I need help with paintbars. The system is this: Go long when high > highest high of last 10 bars (print up arrow) Sell when low is < lowest low of last 2 bars (print down arrow) I know how to code highest high, lowest low and the arrow. The problem I ...
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How to never get an account wiped out?

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Tuesday, 09 January 2007

Independent of your strategy money management is most critical to a successful trader.

What about designing a structure which only works on percentages?

Once a loss occurs the account is for example at 50%. After the next loss it's 25% (then 12.5% ....). But never 0.

If there is a winning streak the account will scale up nicely.

As long there is an edge during the livetime of the account (which is theoretically endless) the account will grow anyway.

What do you think?

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