Nick Radge from The Chartist, a stock market newsletter, has been designing stock trading systems for 25 years. During this time he developed the Bang for Buck trade management strategy. In this article, Nick Radge explains why he developed the Bang for Buck and how you can use it to help choose which trades to take.
In the late 1990s, before the days of CFDs, when the market was extremely bullish on the coat tail of the U.S. technology boom I came across the problem of having too many trading signals and not enough capital to trade them all. I needed some type of filter that allowed me to have an educated guess as to which of the stocks might be a better performer should they both be winners. I named the filter Bang-for-Buck and it eventually found its way into the Metastock User Guide as well as several published trading books.