I have a trend strategy that sometimes runs me into quite a bit of draw down. I don't risk more than 1% of my capital per trade, but when the market goes through a range, I do lose quite a bit at times and can draw down as much as 20%, but when it trends I more than make up for it. If I scaled out, I am sure it would reduce the draw down, but ultimately it would also reduce my gains. I am curious about everyone's tolerance for draw down. Please poll and comment. Thanks.
Poll
- How much drawdown is acceptable?
- | Joined Mar 2011 | Status: Member | 441 Posts
'For the market to work, it needs people who think that they can beat it.'
- | Joined Mar 2011 | Status: Member | 441 Posts
'For the market to work, it needs people who think that they can beat it.'
- Joined Oct 2009 | Status: Exploiting psychology of the crowds | 1,426 Posts
Cut short your losses. Let your profits run on. David Ricardo (1772-1823)