Money Management Strategies for Futures Traders

Distills complex theories for the benefit of the average trader with little or no background in finance or mathematics by offering a wide range of valuable, practical strategies for limiting risk, avoiding catastrophic losses and managing the futures portfolio to maximize profits. Numerous topics are explored including: why most traders lose at the futures game most of the time; why most mechanical trading systems are apt to fail; the probabilistic approach to trading; how to make stop–loss orders work for, rather than against you; the pros and cons of options versus futures trading; and how to limit risk through diversification.

Spis treści:
Understanding the Money Management Process.
The Dynamics of Ruin.
Estimating Risk and Reward.
Limiting Risk Through Diversification.
Commodity Selection.
Managing Unrealized Profits and Losses.
Managing the Bankroll: Controlling Exposure.
Managing the Bankroll: Allocating Capital.
The Role of Mechanical Trading Systems.
Back to the Basics.
Appendices.
Index.