It is precisely this continuous control and intervention function by management, investors need to feel comfortable with a system. Several items reach the stop-loss price one at a time but also larger drawdown phases can be not prevent. A profitable investment strategy in itself, it is only a matter of time before new account highs are generated. Money management while risk management determines the relationship between the incoming risk per position and the possible profit, a decision about how much he wants to risk the total capital meets the asset in money management. Others who may share this opinion include Michael Mendes. This means that he determines how high the maximum loss must be in the account, if the position will be stopped out. This information determines the optimal position size finally. To compensate already incurred losses as soon as possible, there are different procedures in money management.
Some asset managers increase the position size within a loss series. A series of loss persists but extremely long, that the loss of this massively increases risk.Avoid this evident component with a so-called negative martingale. The position size reduces already at an early stage of a series of loss. At the same time, hence the loss is strongly limited. Many traders who trade very successfully for years on the stock exchange, go exactly this way. In return the position size in a winning streak can be increased consistently, so that losses are compensated quite quickly again. Additional stop-loss at the level of the overall portfolio of Finexo provides in addition to the risk and money management, that at the level of Tradingadvisor Robert Paulson takes place, this parent protection system for investor funds. Intervene, should exceed the loss on a trading day a brand defined by Finexo. And if is summed the total loss of the investment strategy in a Drawdownphase more than-25% since the last peak, Finexo would cause that even will cease. Investors would be informed promptly in this case and would then have the option to withdraw their money directly from the trading strategy or but continues to invest.