subject: The Evolution of Secure F [print this page] The advantages of using these variations and looking for an optimum fraction are that in an ideal situation nothing is better. With other forms of money management, if you trade with too small a position you are going to make money too slowly, and it might not be as efficient as using a more aggressive fraction. On the other hand, if you trade too large a position there is a possibility that you will blow out an account when you have an unexpected loss or drawdown. In theory, Secure F or one of its variations would be the best solution because it would maximize your money management and the potential returns that you could have on your trading account based on historical information. However, these money management methods can often lead to positions that are too large for many traders. These money management methods should be studied carefully before being implemented, but are generally not suitable for beginning traders.
