Hello everyone,

As I work on developing my algorithmic trading bot focused on Nasdaq futures, I realize that one of the most critical aspects of trading is effective money management. I understand that having a solid money management strategy is essential for long-term success and minimizing risks, especially when using Level 2 order flow analysis with Sierra Chart.

I’d love to hear your thoughts on this topic. What money management techniques do you find most effective, particularly when working with order flow? How do you determine position sizing and risk-to-reward ratios in your strategies?

Additionally, if you have any resources or tools that help with money management in trading, please share! I’m eager to learn more and incorporate the best practices into my project.

Thanks in advance for your insights!

Risk to reward is useless unless you know probability. It's the probability that gives a risk to reward ratio its edge.

Bookworm 

Risk to reward is useless unless you know probability. It's the probability that gives a risk to reward ratio its edge.

Good to see you @Bookworm

Bookworm 

Risk to reward is useless unless you know probability. It's the probability that gives a risk to reward ratio its edge.

Graphical version of @Bookworm's reply.

You want to be to the right of red line. Red line is breakeven.

Net loser strategies are to the left of red line.

Blue dots are some of my personal strategies.

RemiM 

Hi ! You code with c++? with what tools? brokeur? platform? because i'm planning to start with ninjascript but i have a master's degree in ia in computer science in c++ i know it very well.

Hi @RemiM,

I decided to answer your question here, hope thats OK. I use CLion (Jetbrains) for C++. Most of my C++ code these days is to support my trading app which is in Python. I use C++ for data or computationally intensive portions of my system because Python is not the best language/environment when it comes to speed of execution. I use Pybind11 to wrap the C++ portion and generate Python modules that I can include in my Python app.

Based on your posts on this thread and because you said you are planning to start with ninjascript, it looks like you are in the beginning phases of your trading journey. If you will allow me to give you my 2 cents, I would advise you to not use any trading platform until you develop an edge. In order to develop an edge, you don't need a trading platform, you just need data, programming skills (which you have) and a lot of time. Once you have an edge, you can get access to a trading platform and live data. These days, getting clean, unfiltered data for almost any market is possible and really cheap (compared to before). Hope that helps.