For users having the Money Management option. You may omit this part if you are not.
Automatic Money Management (MM) strategies have been built-in the Professional version. Click MM icon and it will start format of MM. Manual MM calculator is also enclosed. You will no longer trade a "fixed" number of shares for stocks or contracts for futures. Your trading size will be varied with your account equity to achieve the best profits with minimum risk. Using the "Fixed Ratio" principle of MM, AT 7.0 will automatically calculate the Shares or Contract Size to trade. Potential profits with MM for a winning system could be up 200% to 2,000% with our advanced the money management formula.
Money Management (MM) is a very important issue in trading. A good MM strategy can help a winning system to make much more profits. However, MM is not a trading system, it cannot turn a losing system to a winner. Therefore, you must first have a winning trading system before applying the MM strategy. MM deals nothing with entry or exit rules. It only calculates the trading size (shares for stocks or contracts for futures) based on your current account equity (or balance).
The state-of-the-art Money Management formula is built-in AbleTrend trading system. "Fixed Ratio" strategy is used by our MM routine. It uses AbleTrend system performing data or your manually input data to run the calculations. MM routine outputs the trading size for your current account.
An innovated Money Management Calculator, , is also created by AbleSys. It is associated with any chart that the Money Management is enabled. You may get the optimal trading size information at your figure tip.
System Performance Requirements for Applying the MM Strategy:
A winning system with Profit Factor > 1.50.
Lower Max Draw Down (MDD), < 1/4 of initial account balance.
Higher winning rate, > 60%.
More number of trades in certain time period.
Here, Net Profit value is not very important. As long as the system could meet the above requirements, the MM strategy will significantly increase the net profit along the trading process.