<div class="bbWrapper">There are two ideas I'm looking at with the risk pools thing<br />
One idea is the "three Sisters," as the person I learned it from called it (forgot the blog name, sorry). You have a Trading sister, a investment sister, and a ugly, super safe sister.<br />
So trading sister(hence the one everyone likes to date since she..wild, but manic depressive), would have higher risk, but majority of your profits come from it. Then you move it down the line to the Investment sister(the sister who is a bit mature, but still understands risk, the one that you marry). I guess would be...like doing trades that are less risky, like scalping for 10 pips, and only doing it 3 times a day. Or some large swing trading with trends. Or it could be just in a entirely different market, and you invest in stocks.<br />
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Then the safe sister, the unfun one. Is account protection. So its job is to protect the other two sisters from blowups. She can come in and cover the other two in damage. She the sister that becomes a nun. This is just a savings account. You use it when you have to cover a large drawdown, like 10% or more, so that you will have enough capital to keep things up, if your taking distributions every month, etc.<br />
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So you take your profits and move it down the line. This way your funds are always active. Plus, this can be done with any amount of money, since everyone has some sort of 3 way investing setup. Your investment sister could be a business, and a savings account is the safe sister. Doesn't matter. Its more about figuring out ways to live off your trading. <br />
Now, The other idea for me, you figure out the risk for each system(in our case this will be EA's) you wish to run, and each one gets its own account(or one gets like two running, if they don't trade the same currency pair, and you can separate how much each one can trade). You then move money around based upon the&nbsp; one with the highest winning %. When it begins to draw down, to say..oh 3% you shift the account size down, and you move the the other better performing strategy.<br />
This way your most money is at work with your best system, and the ones that are not producing as well, have less money to risk, causing blowups to be less painful, since you limit their size of trading. Plus if you really want to diversify it, you can. <br />
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I saw this is how most quantitative trading places do their risk management, but they are moving money around on a daily basis, so their money management almost becomes another trading tool, in their favor. Plus, you could takes advantage of leverage a bit, since you are using it when its favorable, and moving it down when its not. <br />
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Of course, you can combine the two. You can take second risk pool idea in the trading sister. The investing sister and safe sister, can be plugged by other things.</div>
