How much 'heat' do peopel have?

[Camlofhz]

I started a coupel of other hreads in thsi section in trying to come up with my system.

My next question is - how much total risk do people have open at amny one time?

My own rule i think is to have a 10% total risk open at anyone time. (with 2% per position)

That means - if i close a position due to losing the 2% i would then look to open another one to maintain the 10% total risk.
Or - alternatively if my initial SL gets raised (thereby reducing my total risk) i would again look to open another position to maintain the 10% total risk.

My main idea being if my system has a positive expectancy then i want to have open positions to take advnatge of thsi positive expectancy. (Obviously onlytime will tell whetrehr it does or does not have a positive expectancy)

[Carlosdem]

Basically i aim to have 10% OPEN risk at ALL times. (but no more)

Can anyone point out anything particularly wrong with teh above logic?

[Carolyntig]

In forex I will go 4% on first and second positions (swing trades on daily prices) as long as they don't closely correlate. One or both will usually start to go my way within 1-3 days when I will trail the stop continually towards break-even to reduce exposure. Then I'll be thinking about adding a third position, still hopefully non-correlating but this would probably be 3 or 2%. When a position goes to b/e, that would allow me a fourth position and so on. I rarely find I have 5 positions open at once. I'm not absolutely always in the market, oprobably 80% of the month.

[cayrozbq]

The route is that your system tells you when to enter a trade and your money management tells you how much to risk on it.

You can't really reverse the process and enter a trade because you reckon you need to risk some money.