DislikedHello again.
I will share the final component of the strategy. What I have presented to this point is excellent (IMHO) but still lacks protection.
.Ignored
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DislikedHello again.
I will share the final component of the strategy. What I have presented to this point is excellent (IMHO) but still lacks protection.
.Ignored
DislikedTdion has no problem with modesty. He has a big problem with making a real trade.Ignored
DislikedOkay, so let's say I have $1000. I make one trade and it hits my 30 pip stop loss and reduces my account to $950.
Does this mean that my next trade's lot size will be determined by doing 1000/30/10?Ignored
DislikedNo. You have to know the maximum drawdown you are expecting. So if you think your strategy will draw down no more than 500 pips before recovering, the lot size is:
Highest balance achieved (1000) / 500 / 10
Once the account goes over $1000, then you will recompute (For example, if it goes to $1200, then the new lot size is 1200 / 500 / 10
You only change the lot size after the account reaches a new high. So in the case of you losing your first trade, you use the same lot size again.Ignored
DislikedTdion by keeping the same trade size after a loss you reduce the "pips" needed to get the loss back but you also are compounding your losses. if you lose again then the % increases and again.
It makes no sense you're just compounding the problem. If you'e willing to risk higher % to get the lost money back why not just overleverage to begin with...
I don't see why you want to make this business any more riskier than it all ready is
cheer
BTW what is your company gonna be about?Ignored
DislikedIn this case, you need to create an EA for your system in order to know your max DD from backtest data.Ignored
DislikedEDIT: @ Cindy & Tdion: Tdion, I think you could have sold this to Cindy a little better than you tried to in your above post. When one trades a fixed % of capital they are in effect giving away, at least part, of the positive expectancy that their method offers. You are fighting math.
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