Greencubetrader's Blog

June 8, 2009

Risk Management

Filed under: Risk Management, Uncategorized — Craig Galea @ 10:55 pm

Conserving capital is the number one risk management responsibility.

Losing traders spend 85% of their time and effort on charts and indicators & 15% of their time is spent on studying discipline and risk management.

Successful traders spend 15% of their effort on charts and indicators & 85% study on discipline and risk management.

Green Cube Trading plan is an algorithm, a finite list of well-defined instructions for accomplishing our task that when followed precisely will result in success.

The Green Cube initial set up, signal bar and confirmation will terminate in a defined end-state of success.

Formula for Success

Filed under: Risk Management, Uncategorized — Craig Galea @ 10:53 pm

The Formula for Success is to let those winning trades run and minimize any lossing trades, The Green Cube Trading System details how to accomplish this.

For example, if your winning percentage is 65% wins and 35% losses (something easily obtained incorporating the rules of Green Cube) the system will detail how to for example have your winning trades be +$1,000 for each win, and your losses be -$500 for each trade.

In this example, over a 20 trade period you would have 13 wins (65% win ratio) @ $1,000 each for $13,000 and 7 losses (35% loss ratio) @ $500 is $3,500 in losses; your net would be $9,500.00

As you can see, risk management is critical to your trading success.

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