3SOF

Dear users,

I am asking for help to testing this model of Risk Management.

Thanks, OV

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Dear Sirs, Madams, Club's Members and Users,

Money Management, also referred to as "risk management", is absolutely critical to successful trading. We regard it as one of the most important aspect of trading.

We believe our Money Management Model is a usefull tool for the long run trading.

We are looking all the time to improve the performance of our Money Management (MM) Model and make the interface more intuitive and user friendly. The global market give us a good opportunity to trading news and better opportunities, for this reason we prepared our MM model to this challenge and we upgraded de model with a exchange cell for every trading, give to the user the possibilities to calculate the exchange for each trade. We think the MM model needs calculate the fees and commission for each trade, special for day traders where the profit margin is small. So, in this new MM model you can consider the cost effect in your performance and money management but not in your risk management, for this you can continue use the confidence level and risk/rearward ratio.

The upgrade introduce a new layout, the excel 2007 be necessitated.

We recommend that all users to substitute the last version for this new upgrade.

You can download the Money Management Model upgrade from the Money Management Model upgrade (100 Kb)

NOTE: The old model had 8 MG and this have only 100Kb. This was a great thing because know you can download it and transport in a pen disk very easily

Money Management model images:

MENU RISK MANAGEMENT- Here you can define the risk for each theme and objective to your account.

The philosophy is:

We think the right way to be a successful trader is investment focuses on a very limited number of core investment themes that are not highly correlated.

In our Money Management Model we can select the percentage of money to allocate in each theme.



PORTFOLIO- Here you can registry your trade with the stop loss and target and the MM give you the amount to sell or buy according the risk you determine for this confidence level and theme. Here you can control your performance for each theme.

The philosophy is:

Before we ever enter a trade, the first thing we should determinate is how much percentage of money we will be risk on any one trade. In this Model we choose the percentage of eventual loss for each trade only in the first trade, after the model make the rest, using a fixed-percentage bet it tells us how many shares/contracts to purchase and how much money to place at risk. The fixed-percentage bet system for money management model uses the AntiMartingale theory. This strategy automatic increases your risk when you win and it decreases your risk when you are losing. With this system the equity has an exponential growth.

We should strive to keep our losses manageable, and ensure that no single trade does too much damage. As soon as position is initiated, we should have a stop loss. Stops may be used to limit losses and protect profits. Stop orders must be placed in appropriate relation to the chart (or reason to enter in trade), outside of the price range determined by the volatility and far enough if stop you to know that you were wrong, avoiding getting stopped out by the normal "noise" of the market.

Our Money Management Model give us the possibility to evaluate the confidence level of a trade looking to risk and reward of that trade and determines the best use of investment money. It increase or decrease the number of shares/contracts to purchase (how much money to place at risk)

NEWS FEATURES: Exchange (with currencies list); fees; better stop/target calculator; more risk control with the unrealized esteem loss



CHARTS- Some nice chart where you can easily evaluate your performance and distribution for each theme and confidence level.










Sincerely,

RIGHT SIDE investment club team