Disliked{quote} I don't know from where he got this method, but must admit that he is very close to the best system I ever came across. The only issue with him is not fixing his risk tolerance. However, the most strange thing I find is his win rate of 97%. This should be around 50%. This system uses few deeper techniques but the basic concept comes from the fact that this market always moves in cycles.Ignored
What I don't understand is why after having such a long drawdown he wasn't able to counter his position during that long negative move against him. After peeling off a succession of wins, is he so addicted to his 97% win rate (which actually means nothing) that he wasn't able to accept a loss (offset by a series of wins) and keep trading with a far higher level of available equity? (Note: This sounds very similar to Beginner Joe's trading tactics.)
This is a serious flaw in his mindset and his trading strategy/system. If you get to a point where you forget that you can be caught 'unexpectedly' at any point in time - even when the charts say otherwise - you are creating a dangerous trap of having a bad position get much worse, sometimes dangerously so.
I can't emphasise enough that everyone who trades without SL's needs to plan how you're going to trade when your system fails (due to changes from ranging to trending, loss of volatility, etc.) and you're left with some positions that the market seems to have left high and dry. Keep a negative outlook about every trade you make - as it could be the one (or the few) that are left dangling.
Dealing with these 'lost' trades is exactly the reason we keep a decent amount of capital in our accounts and is also one of the skills you need to acquire if you're going to trade without SL's. You can't just wait out the market, as at some point the market will move just far enough to take you out...and possibly then go right back the other way. :-/