chasen
How much money should I allow per trade based on my total funds?
Have seen all kinds of suggestions including 4%.
Quote 0 0
AbovetheGreenLine
If you have demonstrated to yourself that you have the discipline to follow the Rules, and ALWAYS have in SELL STOPS, why not put up to 20% in each position?

This is not "asset allocation" where you are spreading it around so much that you don't make much annually.

This comes down to the "definition of risk"... Many say Spread it Around.

We say "Own the Strongest, High Relative Strength, ones that ALL BELIEVE in, ones that few have losses in and few sellers.

By counting the Money Flow, the Strongest are SAFER while they are going up... Once Momentum breaks,

and R S drops, all changes, and you must EXIT... Do you have the DISCIPLNE for that?

And don't BUY Way Above the G L.
Good trading, and tell your friends!
Quote 0 0
chasen
Thanks so much for your reply.
One of my biggest concerns is that even with a stop loss, what if the
market tanks one day because of a scare, such as 9-11, and skips over that stop loss, is there a way to protect myself from that happening?

Quote 0 0
AbovetheGreenLine
Markets had gone Bear a full year before 9/11... First decline from Top was 1530 down to 1306 = -14.6% drop.

Following Green Line Rules, you should have Exited around 1420 (worse case -7.2% loss).

Then you would have been Short or Inverse Fund for Max gain of +33.5% down to 945 on SPX. [smile]

SPX9-11.png 
Good trading, and tell your friends!
Quote 0 0
chasen
How did things play out with the 2008 crash?
Quote 0 0
AbovetheGreenLine
Following the Rules, you should have owned Inverse Funds like SH below.

Now we are waiting to buy again...

SH.png 


Good trading, and tell your friends!
Quote 1 0