The concept behind the "Zen Trading" philosophy is a tight stop and large profit targets. With this type of money management, large returns are possible with very minimal draw down. With each individual trade, I am risking no more than 2.5% of account value. My stop is always 12 ticks and my first target is typically 36 ticks. This is a 1/3 risk/reward ratio on the first target. Depending on the trade, 72 ticks is usually the second target and the third is held until a break of trend.
More to come...
No comments:
Post a Comment