How crucial is risk management in protecting the capital and for healthy return as well : A case study

hw crucial is risk management in protecting the capital and for healthy return as well : A case study@PAVLeader @sanstocktrader @RajarshitaS

courtesy : https://t.co/Jx7mbp2Y3p pic.twitter.com/SmakhUAQF7

— Aneesh Philomina Antony (@ProdigalTrader) July 31, 2019

Coronavirus impact...

If true, the 2% at risk = 150 million people on the planet.

This (very very) dangerous virushead doesn't get that the medical system will be overloaded, hence 0000000 more casualties from unrelated conditions & diseases owing to disruptions. https://t.co/AlIXblCiS8

— Nassim Nicholas Taleb (@nntaleb) February 27, 2020

Learn to be paranoid .. always

https://t.co/KV4RibiIWK

— Nassim Nicholas Taleb (@nntaleb) February 24, 2020

My losses & its reasons & the measures taken ( by Keshav)

Reasons : I am in a net loss since this year beginning. Market is range bounded for almost 2 months. Since my trading method requires a prolonged uni directional movement to be profitable i am not able to make any profits and also i am in loss.

In the best of my trading days i have enjoyed profits of upto 40-55% returns in a quarter. Since jan 1 2019 my returns is -3.5%. The draw down has been quiet less because of the risk management measures which i had taken. After making few losses i started to reduce my frequency and also took only 0.2-0.5% risk per trade.

Measures being taken : I do not know how prolonged this range bound scenario will be. It may last for more time than historically observed. Hence i am going to keep my risk per trade to 0.5% and reduce the time frame/ Stop loss points. I usually trade using 5-15 min TF and consider 20 periods highs and lows for decision making. But from now i will use 15 min candle and i consider 5 candles highs and lows for decision making. Will not attempt any pyramiding techniques for a while. Lets see !!

How position size affects your returns ( by Keshav)

Here is the result sheet of a coin toss game. 

Let's say the rules for the game are: (1) we start with $1,000, (2) we always bet that heads come up, (3) we can bet any amount that we have left, (4) if tails comes up, we lose our bet, (5) if heads comes up, we do not lose our bet; instead, we win twice as much as we bet, and (6) the coin is fair and so the probability of heads is 50%. This game is similar to some trading methods.