Money management system #3 (Lot size management)

Umm, I only started learning Forex about a month ago and I thought this advice was really bad... but then I thought: "umm.. well I am new, maybe is worth thinking about?" and as soon as I read that over 90% of comments said what I first thought I can guarantee I'll never use this "tip".

But might consider givin that tip to someone I really really hate, lol.

I am 50/50 with this strategy. On one end it appears to be a recipe for disaster but as the previous post stated. If you have all losing trades this disaster does pertain to you. But if you have a solid trading plan, teamed with this it can be done. For instance my husband and I went to Vegas for 6 days, 5 days straight we played blackjack. And always won. Not because we were lucky, but because we used this same system. At the time we were doing it, we didn't think of it as a system, it just seemed like common sense. It had us at the table all night, every time. When we got home decided to use it to trade binary options. I turned $1200 into $11,000. But then here's the disaster. I ended up having all losing trades in the end and lost it. But with this method applied to trading, I believe it is way safer, because it's less of a gamble. You stack the odds in your favor when you trade. You know when certain trades are going to be good ones,and that's where you pack on the multiple lots to make up for losses. That's just my experience and opinion. I guess some would call it the Kelly Formula. Thanks to whoever posted it.

This is a terrible strategy and is complete and utter non-sense.

Please goto wikipedia and lookup the 'kelly criterion'. All you do is bet the percentage of your total bankroll that the kelly criterion says. If you follow this non-sense you WILL eventually bust out.

bullshit management

Actually, the author left out a bit on the title. It should be:

Money management system #3 (Lot size management - WHAT NOT TO DO"

A Waste of web space.

Mike

my take on this is. This will deplete you capital faster than you can replenish it. I think if you have more than 3 consecutive losses you should stop trading for that session. Go for a walk or something, come back and start fresh.

Possibly for some it will be, but for others, who knows... there is a rational seed in it.
If your system brings you only losing trades, say, 5 losing trades or, even worse, 10 losing trades in a row, you'll be getting rich no sooner be it with or without this money management technique.

As I see it, we can use this system at least while scalping - risks there are pretty small to stop worrying about margins. If a scalper pulls out profitable trades most of the time (which good scalpers do), he can use this system with a happy outcome. I see no disaster from this point, sorry.

Rich

Did you say disaster? I'll say this is a recipe for catastrophy, waiting to happen! Pls, kindly remove this post for God's sake.

this is a recipe for disaster................................