The Drawdown That Will Destroy You | Forex Factory

  • The Drawdown That Will Destroy You

    From tradeciety.com

    There is a point of no return when it comes to drawdown and it is closer than you might think. I often get this question, thus I am writing this article now so I can just send people here in the future. My personal threshold is 15% drawdown from the high water mark. If I reach that level of drawdown, I reduce my risk drastically until I get back to a 10% drawdown from the peak. If I ever run into 20% drawdown from the high water mark, I stop trading completely and figure out what the hell is going on before putting on any more trades. Luckily, I have never hit 20% drawdown (yet) due to managing my risk, using varying ... (full story)

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prettycloud
Sep 20, 2017 11:44am
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I reached the 95%. No experience whatsoever. Now, I'm picking myself up and starting all over with the remaining 5%.
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MustafaHaide
Sep 20, 2017 12:41pm
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Quoting prettycloud
I reached the 95%. No experience whatsoever. Now, I'm picking myself up and starting all over with the remaining 5%.
Now the logical way forward is to limit your position size to 1% of your remaining 5% if you want to survive the vagaries of this market.
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Aussi
Sep 20, 2017 8:47pm
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Quoting lorenzo1894
cut your loses very quick and accept that you are wrong
and when the reversal happens you kick yourselve
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Mingary
Sep 20, 2017 10:52pm
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It's really funny that the "commercial" always speak in terms of 100s of thousands when in fact the average retail forex account is rarely above 5 K
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MaverickCT
Sep 20, 2017 1:06pm
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If I may, another option is to stay on a test platform until you actually consistantly make more than 50% good trades and then try live
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lorenzo1894
Sep 20, 2017 5:51pm
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cut your loses very quick and accept that you are wrong
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