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Money Management

This category contains 5 posts

Your specific counterparty risk is pretty much a crapshoot

With the latest debacle of Peregrine Financial Group Inc. CEO, Russell R. Wasendorf, Sr., misappropriating client funds, of which at least $200 million is currently unaccounted for, one has to really ask just how do you measure specific counterparty risk? Note that Peregrine Financial Group Inc., better known as its online moniker, PFGBEST, was a … Continue reading

Corruption of Libor, pffft.. What? I need to pay $1,000 more a month?

This article by Reuters via CNBC, ‘Done… For You Big Boy’ – How Emails Nailed Barclays, blows open how partial the process is for a bank to influence the London Interbank Offered Rate. To summarise, in-house AND external traders, through direct contact with Barclay’s Libor submitters, influenced them to set rates at requested levels. From BBA Libor – The … Continue reading

Drawdown Percent Close EA

This is a very simple trade management EA that will close all your Open trades (or Open AND Pending Trades) when your drawdown percentage exceeds a set limit. E.g. Balance = $10,000, if “DrawdownPercent” is set at 20.00, if Equity falls below $8,000, all Open Orders will be closed I wrote it because a myfxbook … Continue reading

Maximum Relative Drawdown in MT4

This post is split into 3 parts. Part 1 explains how MT4 records Relative Drawdown, which is not well understood. Part 2 will show my code to calculate Relative Drawdown against Balance just prior to a trade, which I inherently find much more useful. Part 3 shows the mql4 code for calculating and displaying this … Continue reading

Risk Management, Contract Size, and Pips

Alright, very first post. Haven’t thought about the structure of the blog, but a key topic that comes to mind is Risk Management. When trading, it pays to know the maximum of what you are risking each time you initiate a trade. A clear-cut way is by a percentage of the Balance of your account, AccountBalance(), … Continue reading

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