I started this post to try and develop collaboratively a basket of trading systems to minimise risk and maximise profits without blowing trading accounts. My suggestion is to build up say 5 systems to make 100% of a portfolio. Each of the system is to have its weighting as configured by it's statistical results shown such as DD, performance per month, risk to reward, risk managed, length of system being in operation etc. The basket should contain a small percentage to a high risk strategy that works well, then a big percentage aimed at med risk strategies and low risk strategies, but feel free to disagree giving reasons and suggestions.
So if you have any system in mind that would be useful in this topic do post the link for them and suggest what percentage they should be allocated of the total 100% and your findings are based on what? The good thing about basket trading is that if an account is detected to be declining in performance one should replace it by a better strategy that is performing much better. This will weed out the weak systems and hopefully maintain a high standard of a basket system trading produced.
No I meant of the 100%of funds what percentage of them would you allocate to high risk, media risk and low risk strategies? But you must use all 100%of a fund. Sorry I wasn't clear. Most people invest 100% of their fund on one strategy only and when it fails they lose all their funds I.e 100 % of funds,so the point is to protect the account.
Yes Alex that's the idea which is far superior then using only one strategy (50/50 success rate at best) in which if it fails then you lose your entire fund. Perhaps such a system will have sustainability and if such a basket is made out of several systems say 5 if one is not working up to the expectation it can be replaced to improve overall performance.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.