Dollar risk vs percent risk

Napolean

Trader
Sep 15, 2019
49
4
24
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Hi all, I'm using fixed dollar risk management at the moment but plan to increase my dollar risk as it reaches a certain account size progressively.

Just curious if there's any opinion over which is better. In terms of handling losses and expediting winnings increase account size. Would be great if anyone have some statistical research to compare both as well.
 
You are asking "which is better", but you only mention one method - gradually increasing fixed dollar risk as the account size increases. It basically works as a rough fixed percentage risk but it less sensitive to your account size. This will result in slower profit accumulation (compared to classic fixed percentage risk) in case your system is profitable, and in faster loss accumulation in case your system isn't profitable.