[waveslider]

There is a program called "market system analyzer" that can test all of these different money management techniques. I think they have a free one month trial.

My opinion is that you add on one contract per trade after reaching $XX account value.

Doubling position size almost always seems like a bad idea, so does pyramiding as you win if not done properly.

In pyramiding your entry in the same position as you win you may end up with an inverted pyramid as you raise your average entry price. Subsequent entries should always be smaller in size.

The trick to money management is to take a lot of trades, and manage them according to your individual approach. I see there being two approaches:

You are either a high probability trader, or a trader who has larger average wins than average losers (high profit factor).

A high probability trader wants to keep his maximum losers as low as possible. As long as the losers are not too big and the probability is high enough, the account will remain near its profit peak.

High probability trading normally means your losers are larger than your winners. Your winners are small, but consistent.

A high profit factor trader can have a low probability, but still be profitable as the size of the winners take care of losses. A high profitability trader has smaller losses and larger winners.

The high profit factor trader may have more extended draw-down periods and more time in the market (exposure).

So decide what your style is, and add size little by little as your account size grows.

WS