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Effective Cost Technique

by Gav Leave a Comment

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.

Filed Under: Trading Journal Tagged With: FX, Money Management, Trading Journal

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My Name is Gav.
I am a Father, Husband, Trader, And Blogger. A serious coffee addict. I started training since 2005, mainly on FX and Futures.

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