compounding---best % to trade??

[goose4]

Hi fellow traders


Well im a day trader and I trade the conservative 1% per trade.

My history as a trader is that im scared slightly mentally from blowing a few accounts back in the day but have come through the other end.In the last year (12 months) I have averaged 76 pips per week trading 1% per trade.
I undertand if I Continue as I am I will reach my goals but like all of us it would be great to accomplish goals earlier using money Management.The draw down with the way I trade is low.The key to not going broke is to respect risk, take small positions that wont allow you to blow out. You must always keep in mind that in trading you are only playing the odds. You may have a setup that is correct 75% of the time but each trade is a random event. It doesn't take into account the last trade. If you have a 75% system, you can still be wrong 10 times in a row, and if you trade for any amount of time it will happen.This will happen to the best day traders in the world but on the plus side you will win 20 trades in a row.
My strike rate is 70% in my set up-should I stake more than 1% per trade to Maximize profits with my strike rate and trading history in the last year?

Any feedback would be much appreciated

 

[D70]

2% is as far as any level headed trader should go.
If you are confident in your system, you should add to your balance. NOT up the risk.

 

[Hotch]

I respectfully disagree with anyone who decides any % is the maximum, each situation is unique.

Risk allocation depends on a whole lot of things, and there are a lot of different views. I will not repeat my views once again, I'm sure they can be found.

There is not really enough information to make a good judgement, but what I would suggest is you take some of your account and risk that at a higher rate, if your strategy can live with the higher risk it will quickly overtake your larger account, otherwise you know not to risk that amount. Or just go over your old trades and see how it would of gone, and be honest when deciding if you could cope with the draw down.

 

[Jason101]

Could you run a second account along side your first one and use it to take on more risk, in the knowledge that it could blow or could give a great return. And if the second account performs, transfer chunks into your normal lower risk account?

Edit - Hotch posted as I was writing!

 

[goose4]

I have never thought of this.....

quite simple idea but Truly amazing concept.

Or I could demo trade the 2%-3% account side by side.Will start this 2moro.

Thanks my friend.

I respectfully disagree with anyone who decides any % is the maximum, each situation is unique.

Risk allocation depends on a whole lot of things, and there are a lot of different views. I will not repeat my views once again, I'm sure they can be found.

There is not really enough information to make a good judgement, but what I would suggest is you take some of your account and risk that at a higher rate, if your strategy can live with the higher risk it will quickly overtake your larger account, otherwise you know not to risk that amount. Or just go over your old trades and see how it would of gone, and be honest when deciding if you could cope with the draw down.