Have those of you who been around long enough experienced account equity plateaus ?
This is the phenomenon, albeit a purely natural tendency, in an equity curve whereby
a particular amount of money in an account seems to serve as a "wall" to climb over.
You get up to a certain amount and then the balance backs off. You get right back up there again
and then, BAM another drawdown, right at the same equity level.
You pound away at it and finally break thru to a new threshold and then sometimes,
on a subsequent drawdown, equity returns to the level that last gave you trouble getting over.
Just like support and resistance, but with an account's equity.
My solution to this has always been to just take some money out so "the market can't see it" :-)
but I know the issue is on the "client" end, not the "server".
The only thing I've found that works is to withdraw $$ and start building it up again.
What does anyone else do to address this? Is there a better solution ?
This is the phenomenon, albeit a purely natural tendency, in an equity curve whereby
a particular amount of money in an account seems to serve as a "wall" to climb over.
You get up to a certain amount and then the balance backs off. You get right back up there again
and then, BAM another drawdown, right at the same equity level.
You pound away at it and finally break thru to a new threshold and then sometimes,
on a subsequent drawdown, equity returns to the level that last gave you trouble getting over.
Just like support and resistance, but with an account's equity.
My solution to this has always been to just take some money out so "the market can't see it" :-)
but I know the issue is on the "client" end, not the "server".
The only thing I've found that works is to withdraw $$ and start building it up again.
What does anyone else do to address this? Is there a better solution ?