Effective Cost Technique

I did not trade on Monday. No good setup, and it was public holiday in U.S.

Tony Juste from Fxstreet.com posted a presentation on money management in the forum of Fxstreet.com. It is called ‘Effective Cost’ Technique. The outline as follow:

• It is a defensive technique. It is based on the probabilities of success of a particular position initiated.
• It was built to prepare for the worst-case trading scenarios It allows for moderate profits while attempts to keep losses under control.
• Allows a trader to determine the stop loss level:
  • Based on equity drawdown
  • Based on technical triggers

Full presentation is available in this thread of the forum. You have to sign up a free forum membership to gain access though. Good stuff. Go and have a look.