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Managing Risk with Equity Curve and Portfolio


Discussion in Psychology and Money Management

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  #1 (permalink)
 
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 liquidcci 
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The combo of an equity curve on portfolio of multiple instruments and setups works wonders for managing risk. I added quite a few setups this year and using an equity curve has allowed me to trade a more diverse range of instruments than I was comfortable with in the past. Allows me to push the envelope of some things that were quite profitable but were a little beyond my comfort zone. In the past I never liked trading with a curve but have found it a great tool if you are trading quite a few instruments and setups.

I find combo of diversification and equity curve to be very soothing to the trading soul.


"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
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  #3 (permalink)
 
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 Big Mike 
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Portfolio Risk and Diversification = Holy Grail

Mike




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 PushHands 
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Would you guys have reading recommendations on managing portfolio risk/equity curve?


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Big Mike's Avatar
 Big Mike 
Manta, Ecuador
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PushHands View Post
Would you guys have reading recommendations on managing portfolio risk/equity curve?

Ernie Chan has an excellent webinar:
Webinar: Ernest Chan - Capital Allocation and Risk Management

Covers allocation and risk in detail.

In terms of equity curve and detailed portfolio trading examples, check the Global Tactical Asset Allocation thread:


Mike




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  #6 (permalink)
 
liquidcci's Avatar
 liquidcci 
Austin, TX
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I agree 100% @Big Mike. It is the closest thing to a grail you will find in trading.


"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Started this thread Reply With Quote




Last Updated on April 24, 2013


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