Netizens have the following answers, which are as follows:
1st answer: --
Dude, in fact, you are a false proposition, the future ** is uncertain, the profit and loss ratio and win rate are also uncertain, assuming you already have a fixed trading rules, then your current profit and loss ratio and win rate are just the statistical results of the past period of ** transactions, reflecting just the fit of your own system relative to this period of time, don't be confused by the illusion. To give an extreme example, a stockholder who intervened from around 998 points in 05 years may have a winning rate of 100% when he insists on carrying and chasing up to 6124 points. Any system has an adaptation period and a failure period, when the adaptation period comes, the wind is smooth, the winning rate and the profit and loss ratio is very high, when the failure period comes, how to do how to lose, begin to doubt life, then the question is, do you count the winning rate and profit and loss ratio of the adaptation period, or the winning rate and profit and loss ratio of the failure period, and how do you know whether the future is a stronger adaptation period or a weaker failure period?I think the right thing to do is to consider more risks, first to achieve steady profits, in consideration of how to amplify the best in order to achieve greater profits, conservatively, do not pursue efficiency at the beginning, but the pursuit of stability, do not care about the winning rate and profit and loss ratio, according to the conventional risk parameters such as a single stop loss of 2% to start the operation, if a period of time the capital curve is steadily upward, to a certain extent can be slightly enlarged to 3%, a period of time the capital curve is steadily downward, and the loss is reduced to a certain extent to 15%, so let's do it for a while, and slowly understand the system in practice, and in the long run, you will know how much will be suitable for you.
2nd answer: --
Individual, it is executed according to a single stop loss of a single symbol that does not exceed 2% of the total funds. The conservative management of funds is to reduce the risk of liquidation to a lower than the probability of a plane crash, and the other is to ensure that the same size of positions can be guaranteed after multiple stop-losses. The starting point of fund management and risk control is not to ensure the maximization of profits, but to reduce the risk of non-profit in the transaction, ensure the stability of funds, and ensure that the transaction can continue. The probability of an 80% win rate occurring five times in a row, or even seven or eight times of stop loss is not small, and the probability is not too distributed, needless to say. If your stop loss is too large, it will affect the invested position, so that the investment in the position after continuous stop loss may become smaller and smaller, resulting in a small winning position and a large losing position. This is especially true if your odds are low. There is not a formula: lose 10%, win 11%, lose 20%, how much to profit,,, your odds are low, encounter continuous stop loss, is not conducive to the rapid recovery of funds, of course, this is said in the case of continuous stop loss. This will also affect the trading mindset. What is said above is to ensure the stability of funds, and another point is that the withdrawal of funds is large, which is not conducive to compound interest, and cannot produce the effect of 1+1 greater than 2. Theoretically speaking, in a mechanical trading system, the system determines that the profit is basically determined, unless it is a heavy position when it is against the right or it is considered that the subjective profit is increasing. Then the mechanical system, the return is basically determined, and the drawdown is similar, the return of a mechanical system is 30%, the drawdown may also be 30%, if it is a hundred, the drawdown may also be 100. There is a formula that the most conducive to compounding is 30% of the system annual return. A system with a 100% return is 100% in two years, and a 100% drawdown in the third year is all over, no matter how much you have made before.
The third answer: --
To ask this question is to get started. 1. If you know the profit and loss ratio and win rate, and directly apply the Kelly formula, you will be invincible. 2. The crux of the problem is that the trading profit and loss ratio and winning rate are dynamic and uncertain, which cannot be accurately calculated (can only be counted afterwards), and traders need to grasp it dynamically, which is also the biggest difficulty in trading technology. So apply the Kelly Formula with an uncertain break-even ratio and win rate, and you will definitely lose. For example, in a Texas Hold'em game, players only focus on how to manage their bankroll after knowing the probabilities and odds of various hand typesFor the best trading, traders should not only do a good job in capital management, but more importantly, how to design a set of trading rules with probability or odds advantages. In other words, trading rules and money management strategies are the two wheels of trading, and one is indispensable. After reading the above, please summarize it from the perspective of a trader with professional financial speculation experience and give your own opinion.
Based on the above three answers, the following points of view on optimal money management can be summarized:
1.Don't be fooled by past win rates and break-even ratios. Past statistics are only a reflection of a specific period, not the future. Therefore, we should focus on stability and conservatism, first achieve steady profits, and then consider amplification.
2.Risk control is the focus of fund management. Make sure that a single stop loss does not exceed 2% of the total capital to reduce the risk of liquidation. At the same time, it is necessary to ensure that the position of the same size can be maintained after multiple stop-losses to avoid excessive reduction of funds.
3.The withdrawal of funds will affect the compounding effect. Money management should pay attention to controlling drawdowns to ensure the stability of returns. In a mechanical trading system, the return is basically proportional to the drawdown, and it is important to pay attention not to exceed the range of the return.
4.The P&L ratio and win rate are dynamic and cannot be calculated exactly. Traders need to dynamically grasp the profit and loss ratio and win rate of trading, and design trading rules with probability advantages. Trading rules and money management strategies are two important factors in trading, and one is indispensable.
Based on the above viewpoint, the best fund management method should be to comprehensively consider risk control and return stability, and gradually adjust and optimize it in practice. If you are a novice trader, it is recommended to start with conservatism and stability, slowly explore and understand your trading system, and gradually develop a money management strategy that suits you.