No Guarantees on Opening Orders

Oct 26, 2011 at 3:30 pm in Risk Management by · Leave a Comment »

Are you one of those spread bettors who sits in front of your trading screen(s) all day looking for opportunities to place a trade manually when the time is right? Or are you more laid back — okay, let’s admit it, employed in your day job?

Low Prices and Wide Stops

Oct 24, 2011 at 8:50 am in Risk Management by · Leave a Comment »

To continue the theme of price gaps the I began in my previous article, I should point out that such price gaps are really only a problem if you employ non-guaranteed stop orders to manage your risk.

Protecting Against Price Gaps

at 8:07 am in Risk Management by · Leave a Comment »

A price gap occurs when the price of a financial instrument falls (or rises) far and fast, moving apparently from one price level to another with no opportunity to trade at prices in between; more importantly, with no opportunity to stop-out at a price in between.

Expectancy and Trade Analysis

Oct 19, 2011 at 1:50 pm in Risk Management by · Leave a Comment »

The idea of formal trade analysis is to gather some statistics on your real-life (ideally) or back-tested trades so that you have some plausible probabilities to feed into the Kelly Formula.

Money Management: The Kelly Formula

at 11:50 am in Risk Management by · Leave a Comment »

I’d like to continue my current theme of ‘money management’ by telling you about the Kelly Formula for optimising your bet sizes.

Money Management and Averaging Down

Oct 17, 2011 at 11:23 am in Risk Management by · Leave a Comment »

One form of Martingale strategy that is often implemented by novice investors is the practice of averaging down.

Money Management and Risk

at 11:19 am in Risk Management by · Leave a Comment »

You will often see the phrases ‘risk management’ and ‘money management’ used interchangeably, as though they are one-and-the-same thing. But they’re not, as I will explain.

Money Management: Martingale

Oct 14, 2011 at 9:30 am in Risk Management by · Leave a Comment »

It’s about time we talked about money management, and a good starting point is a discussion about Martingale and anti-Martingale betting strategies.

The Costs of Guaranteed Stops

Sep 27, 2011 at 10:57 am in Risk Management by · Leave a Comment »

In the past few years I’ve written extensively about what I regard as ‘the most important weapon in the armoury of any trader’ – the stop order. I am sometimes asked about whether guaranteed stops are worth the cost of applying them, so I thought I’d take the time to outline what those costs are.

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