What would be the best money management strategy if I know that approximately every 3rd trade is profitable. What is the best MM strategy?
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$\begingroup$ What about the other 2 trades? Can you tell us a bit more about the distribution of the expected profit? $\endgroup$ – Bob Jansen♦ Jan 18 at 20:42
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3$\begingroup$ Skip trades 1 + 2! $\endgroup$ – JoshK Jan 18 at 21:44
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$\begingroup$ On average, one-in-three trades were profitable? Or every third-or-so trade on the same asset was profitable? (ie an Expo/Poisson problem). With what profit if right and loss if not? $\endgroup$ – demully Jan 19 at 3:23
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$\begingroup$ One possibility is that you monitor every trade, but you enter the trade with real money only if the past trade (or past 2 trades) would have made a loss. This attempts to take advantage of negative correlation between the outcomes of successive trades. $\endgroup$ – noob2 Jan 19 at 10:46
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$\begingroup$ @noob2 hm, now this is pretty obvious. Just to enter a trade after trades with a loss. I think I should take a rest :) $\endgroup$ – Vladimir Kovalchuk Jan 19 at 12:06
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