Forex Trading Money Management System: Crush the Forex Market with Bigger Profits and Smaller Losses! Paperback – January 17, 2017

The most successful traders have always taught that the key to successful trading is money management. Well, here is a very simple but powerful money management technique that works in today's currency markets. The book itself is really about that money management technique, but does not point out any specific entry/exit system to be used.Although Don does not give a trading system example to use with this MM system, he does point out that it works best for any system that gives runs of multiple profits (and losses), which are quite common in the currency markets. For example, a trend following system will give several losses in a row during a consolidating market, but then give multiple profitable trades when the market begins trending again. For a range trading system, the opposite is true as well. Think about that for a moment, and you might just have a revelation.The method itself allows for a large return with small risk to the trader's original equity through a very basic, but powerful, system that "pyramids" on profits from the previous trades. Although Don mentions his trading robots, he does not appear to hype them in order to make a sale, and the ea's he sells are mostly simple trend following sytems which are very consistent and profitable. However, as I will explain below, you don't need to purchase his robots in order to trade using his money management system.As a person, I have found Don to be very honest and extremely generous. He is open to questions and is normally quick to answer any emails I have sent him, as well as transparent about his trading results. You can check out his live trading results on the MyFXBook website under the user name of RouletteTrader to see how his most popular robots are performing.Some of the negative reviewers have questioned the system's effectiveness and the trading robots' durability for the long haul. In my 20 years of currency and futures trading, I question whether any system is profitable forever. Even the turtles aren't doing so well these days, and most of the best robots from 5 years ago aren't even on the market anymore. However, as long as any system continues to make "runs" of profitable trades, I believe this technique will continue to be insanely profitable.To test this method before live trading, I ran a simple 2 month test in live market conditions. The market went sideways a couple weeks resulting in two stop outs and then moved. In the end, I had a 36% increase after only risking 2% (and 4% drawdown), more than triple the amount I would have made if I had been trading the conventional "only risk 2%" model.MY ADVICE:1. Buy this little book; it's practically free anyway. If you're not sure about spending the few bucks on this, you definitely don't have the stomach to trade the currency markets.2. Run through the numbers and test it out manually on a demo account.3. Check out the performance of Don's robots on his myfxbook account (search "RouletteTrader").4. If you feel comfortable with it, apply the system to your own live trading method or purchase one of Don's robots.5. If you don't feel comfortable with it, you're out nothing but the price of a latte and a little reading time.

A much different approach to money management vs. the usual 1-3% risk rule. Not the usual “use this price action pattern” or “Choose this indicator” for entry. Don teaches a money management technique once you’re in a trade, the how you choose your entry point is left up to you. The authors system does rely on winning streaks and how to maximize those streaks by adding lots to them. Don system locks in profits after X number of consecutive wins and starts back at 1 or .01 lot depending on your account size, margin etc. it’s basically the Martingale system in reverse with built in profit points along the way.Don does offer EA’s which will automate his systems which makes it easier but not necessary to use his methods. His bread and butter EA’s are the GPY/JPY 15 min. The EA’s will open trades and manage the lot size, SL and TP levels for you. If you choose to use his robots, you can get into the program and tweak how they operate to better suite your needs. You can observe how his accounts are doing as Don posts his live accounts for your viewing, so you don’t have to take his word for it. I emailed Don with some questions and he was prompt to reply. Please be advised you probably won’t get rich overnight, but you can make a steady sustainable profit with minimal draw down during loosing streaks which keeps you in the game.What do you have to lose but a few dollars and some reading time and it may just change the way you trade?

This money management strategy is good, however, it has its' place. If you do not net consecutive wins often, then this will actually dig your hole deeper. The reason being is because if you suddenly or FINALLY got a few wins in a row under your belt, now your next loss will be rather substantial since your position size is larger. Once you lose, your position size will drop back down to square one at it's smallest, and you have to slowly build yourself back up. If you don't win consecutively, you'll take forever to recoup the large loss. If you have a high win rate, this will make your money multiply like a family of hamsters. All in all, it is good if you know how to use it and when.

Its interesting I had similar experience playing roulette and baccarat testing out mini martingale fibonnaci type money management (bet up as you lose) betting systems. I won $1500 one time on $400 once just by resetting my base unit bets after big wins, locking in profits. But eventually you lose in the long run with these type of systems and house limits and rigged online casinos etc. that have unnatural back and forth win loss algorithms or pattern recognition systems.Finding this kindle book on Amazon, renewed my passion and ended my search for the ultimate money management system for swing trading stocks and maybe later forex.The conventional 1-2% risk management may keep you in the game longer by preserving capital. But like the author said, why risk your hard earned money if you are not going for the big money. Using his money management secrets to keep drawdown low and increase probability of staying in the game longer and keeping the cash flowing, even with a less than 50% system. That to me is the holy grail.Since I already have a simple swing trading pull back method I have been fine-tuning. I just needed a money management, risk management formula that would work better than the hit and miss technical method alone. So onward learning and testing your methods out.Thank You!