In today’s article I would like to wrap up all the important things I have learned in trading in the last decade. So let’s get to it!
1. Risk management and positive RRR
We started to work on our private fund and application with our team three years ago. At the beginning, we asked ourselves one fundamental question: “How can we shift risk management to a really high and sophisticated level?” Please take notice of the fact that our first steps towards working on our own fund weren’t about which broker to use, what server to have, or what strategies we should use. All these questions wouldn’t be significant unless we understood that the base for successful trading is mainly a high-quality risk and portfolio management.
The edge in the market doesn’t last forever. Strategies fail in time (even though some may work for years), markets change faster than they ever did before, and drawdowns were, are, and always will be present. Therefore, the question is – what is the best way to deal with that? These are all aspects that need to be resolved on a risk-management level and not on the level of brokers, servers, and strategies.