Run a moving average on account balance

[FaulknerTrading1]

Hey all,

I'm thinking of running a moving average on my account balance.

I haven't decided the type of MA or the period so perhaps I could have these as constants (inputs).

I want to do this to test a risk management concept where if my account balance is above the moving average, than I reduce my risk per trade and when my account balance is below the moving average, I excecute trades at full risk

Thanks for the support!

[l'andorrà]

@faulknertrading1 Not sure that can be a successful strategy on the ling run. Did you backtest it?

[FaulknerTrading1]

Hello, @l-andorrà

I was just looking to experiment. The idea is based on the concept that when traders go through periods of large win streaks/ losing streaks, their account balances are likely to regress back to the mean. This would have been a measure to reduce those massivce swings.

Its a concept I had heard of online that caught my attention