Equity Curve Trading

Equity Curve Trading:

"Equity Curve Trading
Author: Michael R. Bryant
Date: Unknown
Complexity: Moderate

A money management technique that can sometimes improve trading performance is to modify the position sizing based on crossovers of a moving average of the equity curve. The basic idea is to either trade more or fewer contracts when the equity curve crosses above or below its moving average.
There are at least two basic ways to implement this idea. One is to stop trading when the equity curve crosses above or below its moving average and to resume trading on a crossover in the opposite direction. This is the most basic and commonly used method. You would typically stop trading when the equity curve crosses below the moving average if your system or method tends to produce streaks of wins and losses, so that when it starts to lose, it's best to stop trading until it starts winning again."