Things to Consider in Setting Money Management Rules – Part 3: HOW LONG YOUR CAPITAL CAN LAST

In setting money management/position sizing rules, you should also consider: 1) How long your capital can last, or 2) How long your account balance will drop to the risk tolerance you’re willing to take after going through a series of successive losing steaks. The answers to these questions will depend on: * The initial capital/account balance * How much to risk per trade * The percentage risk tolerance (for Qtn 2)   Suppose your...

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