Danger Real; Fear a Choice

Money management, or position sizing, is a critical component of trend following trading success: Consider wisdom from Ralph Vince:

You want the fewest moving parts (less parameters and less system rules) in your system. Primitive and simple grinding out profits over the long term. It’s not how profitable a system is, but rather that it is profitable. Money management takes the positive expectation, moneymaking system, and performs the real magic.

More.

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.