DislikedAnd now some of you would probably be wondering, so Fartist how much do i risk per trade? Textbooks are saying no more than 2% on each trade. Is that true? My answer to you would be it depends. So what does it depends on? You. If you're adopting a trend following approach, hit rate will be in the region of 35%. That means you have a 1.3% chance of hitting 10 losses in a row. Then you need to ask yourself how much equity draw down you'd be comfortable with if you lose 10 trades in a row. 20% 30% 50%? You have to be really honest with yourself here....Ignored
need a bit more explaination of these figures here. the hit rate of 35%, does that mean you hit a profitable trend trade only 35% of he time? if so where does 1.3% chance of hitting 10 straight loss comes from?
thanks.