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Re: Money management & Martingale
<<So risk 16% each time ... How many ES contracts should I trade if I use a 100K account?>>
if this is a serious question --- dude, 16% per trade?
60% and 1.25 ratio is fine if you do lots of trades. that isn't my style but I know some traders with numbers like that and they do great.
Personally, I would err on the side of being very conservative with contract size if you are getting 40% losers.
If your style is to do lots of trades per day, smaller size trades can add up and you will not get the big dollar drawdowns associated with trading bigger size after having a bad run. a 'bad run' is never that far away if you are getting 40% losers. moreover, many 5-lot ES trades in a day adds up quickly if you trade a lot and can really get that 60%/1.25 target consistently.
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