TRADING PORTFOLIOS

With a fixed percentage risk, we define a maximum percentage risk value over the total capital. Applying this percentage to the current balance, we have a maximum amount to lose in a single trade. This amount will be divided by the stop loss's financial value or the largest loss seen in the strategy's history to calculate the corresponding volume. If the stop loss for a standard lot is filled out on the form, the app will use this value. Otherwise, it will seek the largest historical loss and use this value as a reference. Applying the greatest historical loss is interesting because, in some circumstances, the loss may be greater than expected, as the case of gap openings that force the position to be closed beyond the defined stop loss level, and it is usual in the market. This technique is configured in the fields "Fixed percent value," which defines the percentage risk value, and optionally "Stop loss value," which must indicate the stop size for a standard lot... Compare the..

Also known as: Trading Portfolios, LLC