I think it is important to notice something here: The % ROI I publish as results of my trades are actually the % ROI on my trading account. NOT the percent of my total trading capital used.
I subscribe to a pre-defined money and risk management approach, and the results are just easier to publish if I note the trading account ROI.
Here is what I am currently doing as far as capital allocation: TRADING SMALL. I'm not trading aggressive during these summer months, we've been in a tight range for quite a while now. I'm currently allocating a small % of my capital to Forex trading, and out of that %, only 1/10th is actually available in my trading account.
So, if you see in the blog an ROI of + or - 4% for instance, keep in mind it is 1/10th of my trading capital, therefore, this is really 0.4% per trade. Hope that helps to keep things in perspective
Tuesday, July 21, 2009
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