Futures Trading System Labs: 2007

This month’s Futures Trading System Lab highlights a money-management idea introduced by Tushar S. Chande in his book by Beyond Technical Analysis (1997, John Wiley & Sons, Inc.).

The method is based on the premise that once in a while positive "outliers" — such as prolonged trends or violent moves — occur in favor of an open position, and that by identifying when these events are most likely to occur, you can increase your trade size to capture outsized profits.