The Money Management section in the Scanner module settings allows traders to apply various position sizing methods to trades triggered by the scanner. By leveraging these position sizing methods, traders can optimize their trade quantities based on their risk management strategies and account conditions.
Available Position Sizing Methods
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Fixed Contract
- Uses a static quantity for trade positions, remaining unchanged regardless of account equity changes. This method is ideal for traders with a set trading plan that requires consistent trade sizes.
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Fixed Fractional
- Sizes positions as a fixed percentage of the account equity, ensuring that trade sizes increase with equity growth and decrease with equity drawdowns. This method maintains consistent risk management and promotes compound growth.
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Profit Fixed Fractional
- Incorporates a percentage of closed trade profits into the initial equity calculation, allowing for higher potential returns by leveraging profits while safeguarding the initial capital.
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Fixed Ratio
- Scales position sizes based on performance, increasing aggressiveness during profitable periods and reducing trade sizes during drawdowns, focusing on the relationship between growth and risk.
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Measured Fixed Fractional
- Scales position size in response to defined capital growth increments, balancing between aggressive trading and protecting the account from severe drawdowns.
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For a detailed explanation of each position sizing method, please refer to the following pages on our website:
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