Why do you think my friend lose 1 million dollars cash this year thanks to Brazil? The HUGE Lesson learned

Meetup reminder for Monday night listed below for 7 PM Eastern Standard Time

Why did my friend lose 1 million dollars cash this year thanks to Brazil? The HUGE Lesson learned

I don’t think he applied the logic below but he was an experience pro day trader. This is his second HUGE losing trade.

First, learn when to cut losing trades fast but I wrote about that before! But read this to understand why very few people talk about it.

The last step of this trading system is up on me. Money allocation management for each pair trade

He was also tied emotionally to the trade that destroyed but thanks to automated trading, that should never happen since it calculates based on data and programming logic.
– See more

Reminder about Meetup for Monday night Nov 3.

Risk parameters and money management in a self adapting automated trading world
http://www.meetup.com/quant-finance/events/214210452/

http://www.meetup.com/R-Matlab-Users/events/214210672/

As I come up on my last stage of developing this automated trading system, I am coming to the crucial part of how my system will allocate capital to each trade. Sure I could use Kelly Criterion, but this a whole world that is never really talked about. For instance, how do measure risk exposure to your market or sector risk? How do you hedge out risk? How do you measure risk parameters for self imposed trading limits? How does your system measure real time risk in the markets to switch from portfolio management mode to day trading? On and on it goes. How do you implement into your system? Let’s talk about it as this is sort of really important. You see how crucial these topics are for long term trading surival.

1. Please join my meeting, November 3, 2014 at 7:00 PM Eastern Standard Time.
https://global.gotomeeting.com/join/764228733

2. Use your microphone and speakers (VoIP) – a headset is recommended. Or, call in using your telephone.

Dial +1 (571) 317-3112
Access Code: 764-228-733
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Meeting ID: 764-228-733

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– See more at: http://quantlabs.net/blog/2014/11/why-do-you-think-my-friend-lose-1-million-dollars-cash-this-year-thanks-to-brazil-the-huge-lesson-learned/#sthash.6upNjVtE.dpuf