Money Management/Profit Management


I am wondering if someone can point me to some good resources, preferably here on Apex Investing or Nadex, on how to properly manage the money and profits in my Nadex account. This area seems to be the last hurdle for me to overcome in becoming a successful trader. Thanks!


Depends on what strategy you are doing. And how big your account is and what your risk tolerance is to follow your system.

We teach 5% of account risk a day /6 per trade for Elite - this requires about a 3k account to follow it perfectly. Not required but easier. Not that you need that much cash at all to trade the Elite system just if you want to use proper risk management $3,000 x 5% /6 is about $25 a trade which is basically the risk on a one contract using a nadex spread or nadex binary trade using the elite method.

Often 5% is used on core

5-10% max on EPC - demo this down a lot before doing it

5-20% on news trades -demo it first so you know how to exit but these things rock


Is there a video on the 5% teachings? I’ve seen a video referenced in other posts, but I can’t seem to find it. TIA.


Nevermind. I found it.


Hey DM,

As a trader, would the Min$3K account and/or 5% rule apply well (or can it be applied really) when the Time Scalper/Predictor indicator is going to be used in trading? Seems like you would have to trade until you hit your max drawdown (and hope you don’t) on a smaller account. I know you say it’s best to start with a $5K account min. Should $5K be adequate for this trading style/system, is success less likely with a smaller account with this system?

Or am I all wet here?


Anyone care to share what they do for Profit taking strategies? I realize this is a totally personal choice. I personally was thinking of drawing profits every friday. My friend on the other hand is going to compound his whole account for the year, pay his taxes and then “take profits”. I think I will be much slower at compounding my account, but may feel better psychologically knowing that I am banking some profits hopefully every week. Maybe every month is more realistic? Just curious what some others are doing?


One way which seems to make the most sense to me is to use a % of profits each week (or month or the 1st & 15th or something) and move that out of the trading account. Of that % put half in a “business” account to use to pay taxes, expenses, etc. and the other half in a personal account to reward yourself/family with something. Have an idea or better part of your written business plan of the maximum goal to hold your trading account. I think this is best because if it should be allowed to grow too large many people have a tendency to lose sight of the best practice in money management & take either more trades or more contracts and thus more risk than they would otherwise. So for example if you took 50% of your profits out of the trading account every week and left 50% in to grow the account…at some point it would be X amount of $. When your goal is reached perhaps you change your % to 100% of profits out, 25% of that to the business/tax/expense account & use the 75% for personal or other purposes. There are many ways to do this so you just have to find what works best for you.


i wish you posted the link…I still can’t find it. :slight_smile: