Money Management Explorer
you to learn secrets of money management and position
sizing. Now you will know how much to trade.
What is the Money Management?
Money Management has many names: asset allocation, position sizing, bet size, portfolio heat, portfolio allocation. Money Management(position
sizing) is one of the most important and least understood concepts with losing traders. It is not risk control, not diversification, not avoiding risks, not stop-loss.
Money Management tells you how many shares(contracts) to buy and how much of your account to place on next trade.
Whenever you enter a trade, you have made two decisions: not only have you decided whether to enter long or short, you have also decided upon the quantity to trade in. Most traders gloss over this decision about quantity. They feel that it is somewhat arbitrary in that it doesn't much matter what quantity they have on. What matters is that they be right about the direction of the trade. The decision regarding quantity for a given trade is as important as the decision to enter long or short. While your trading system tell you
what, when and how to trade, a money management(position
sizing) strategy tells you how much to trade.
What is the Money Management Explorer?
Based on your
trading statistics (actually effected or generated using historical data) Money Management Explorer will perform a comprehensive analysis of your trading system. Unlike the majority of technical analysis programs (such as TradeStation or MetaStock) Money Management Explorer allows you to do the analysis considering various money management(position
sizing) strategies. You can track how strategy changes influence parameters and characteristics of your trading system. The optimization module will provide you with the best money management variants based on conditions determined by you. Please notice, that the availability of a good trading system and money management system it not all yet. It is also important whether a
certain trader to work with the system, in other words, psychological compatibility of the trader with the chosen trading method plays a vital part in the final success. There is a simulator in Money Management Explorer generating the
stock quotes based on your trading statistics and simulating on-line system to check this compatibility.
Overview of features
High-speed comprehensive Analysis of your trading system
Various Money Management Strategies
Money Management Optimization
Import your data from other programs : TradeStation and MetaStock
Trading Simulator based on your
position size for future trades