Hi, I just stop by in a very interesting website that talks about money management, in the website was the following example
You have 2 accounts with 2 different money managements
Account A (80% win ratio)
15 Pips TP, 15 Pips SL
You win 8 trades and lose 2.
Based in 10 lot investment each profit/loss would be 1500 USD
The result for account A is 90 pips profit 9000 USD
Account B (20% win ratio)
150 Pips TP, 15 Pips SL
You win 2 trades and lose 8
Based in 10 lot investment each loss would be 1500 USD, each profit would be 15000 USD
The result for account B is 180 pips 18000 USD
This is only an example, I think it is very difficult to make 150 pips with a 15 pips stop loss, but with a 20 or 25 pips stop, I see it happen quite a lot of times in many currencies, I want to hear your opinions about the strategy, and examples of people that use this kind of MM, what currencies trade etc.
I hope this info was useful
Best regards MASMP_FX
You have 2 accounts with 2 different money managements
Account A (80% win ratio)
15 Pips TP, 15 Pips SL
You win 8 trades and lose 2.
Based in 10 lot investment each profit/loss would be 1500 USD
The result for account A is 90 pips profit 9000 USD
Account B (20% win ratio)
150 Pips TP, 15 Pips SL
You win 2 trades and lose 8
Based in 10 lot investment each loss would be 1500 USD, each profit would be 15000 USD
The result for account B is 180 pips 18000 USD
This is only an example, I think it is very difficult to make 150 pips with a 15 pips stop loss, but with a 20 or 25 pips stop, I see it happen quite a lot of times in many currencies, I want to hear your opinions about the strategy, and examples of people that use this kind of MM, what currencies trade etc.
I hope this info was useful
Best regards MASMP_FX
Logic will get you from A to B. Imagination will take you everywhere.