Ask Colin

Some professional traders have talked about using the reverse 2% rule to protect profits. Have you used it in your trading approach and is that compatible with your two models?

I have no idea what the "reverse 2% rule" is. The usual 2% rule is that you only risk 2% of capital on any trade. Is the reverse 2% rule risking 98%? - I doubt it. It sounds like someone trying to associate an idea with a successful concept.

Money management and the two models are two different things altogether. The models are where I have an edge in the market - the conceptual idea of how I can take money from the market. The 2% rule - mine is 1% maximum - is about limiting risk.

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