The Forex Roboteer Forex trading system uses a fully automated built in money management system to decide what risk to take on each Forex trade. The Forex Roboteer uses three automated trading systems which work independently from each other and have slightly different moving average filters on entry and also use entirely different technical indicators to determine entry. Because there are three systems in use, an initial available margin check is made and the value is duplicated to three different money management files which handle the configuration settings of the money management system. The idea behind this is to let a profitable Forex trading system use its profits to grow the Forex lot sizes in new trades and a bad Forex trading system will reduce its Forex lot sizes.
The money management files are deleted at the start of a new calendar month. This will reinitialize the money management process and will apportion equal shares of the current trading margin to each of the three systems and three new money management files are created. It is also advised to delete the money management files when you add extra money to your Forex account.
The Forex Roboteer automated trading software gives you two options to deal with your Forex account money management:
- Fixed ratio money management: this money management system was developed by Ryan Jones and is explained in detail in his book ‘The Trading Game’. In the fixed ratio money management system all that matters is the accumulated profit and the delta (this parameter determines how quickly the contracts are added or subtracted) and the trade risk is not a factor of the equation.
- Fixed fractional money management: The fixed fractional money management system uses a set percentage of the Forex account balance to set the Forex lot size and the trade risk is determined as a factor of the equation. Most people are familiar with the fixed fractional money management method.
Click here for more information about how Forex Roboteer handles money management.
Tags: Automated Money Management, Fixed Fractional Money Management, Fixed Ratio Money Management, Forex automated trading system, Forex Money Management, Forex robot, Forex Roboteer, Forex Roboteer review, Forex Roboter, Forex Software, Money Management, Peter Parsons, Ryan Jones
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