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How many losses can I sustain?

  • #21
  • Mar 26, 2010 5:27am Mar 26, 2010 5:27am
Quoting Binnooh
If you risk 50% – you will wipe out as soon as you have 2 consecutive losing trades...
Just run those numbers by me again would ya, if I risk 50% I'll wipe out after 2 consecutive losing trades?

Quoting Binnooh
The average bank trader or hedge fund only risks 1% to 1 ½ % of the account.
Huh? You sure about that are ya?
  • #22
  • Mar 26, 2010 5:31am Mar 26, 2010 5:31am
Quoting TheGreatMilenko
You mentioned the word calculator. If you can't use a one to answer your own question you're fucked.

Quoting flotsom
.... if you can't read and understand and correctly interpret a simple question.........you're fucked!
lol
  • #23
  • Mar 26, 2010 8:10am Mar 26, 2010 8:10am
Quoting TJPLD
Your account will never reach zero if you lose 1% even infinite times.
Zeno risk management. ...lol
  • #24
  • Mar 26, 2010 4:53pm Mar 26, 2010 4:53pm
Here is a quick spreadsheet that i have used in the past. It takes your winrate and %risk in account.

It will tell you the MAX drawdown as well as the probability of that occurring.

It assumes that your winrate is known and that you adhere to your %risk always.
Attached Image (click to enlarge)
Click to Enlarge Name: max_drawdown.png Size: 60 KB
Attached File(s)
File Type: xls Max Drawdown.xls   11 KB | 1,628 downloads
  • #25
  • Mar 26, 2010 11:11pm Mar 26, 2010 11:11pm
@ flyer415

Thank you so much! That is absolutely perfect for me and much better than I imagined....really perfect. Appreciate it.
  • #26
  • Jan 27, 2016 5:24pm Jan 27, 2016 5:24pm
Quoting flyer415
Here is a quick spreadsheet that i have used in the past. It takes your winrate and %risk in account. It will tell you the MAX drawdown as well as the probability of that occurring. It assumes that your winrate is known and that you adhere to your %risk always. {image} {file}
Thank you so much for posting this! This deserves to be seen by many more traders!
  • #27
  • Jan 29, 2016 5:17am Jan 29, 2016 5:17am
Indeed, this information is very helpful!
  • #28
  • Jan 29, 2016 1:46pm Jan 29, 2016 1:46pm
The great milenko tell me big men
  • #29
  • Jan 30, 2016 2:57am Jan 30, 2016 2:57am
just get a grip on your emotions.if you are down 30% on your account just STOP trading
  • #30
  • Jan 31, 2016 7:10pm Jan 31, 2016 7:10pm
Quoting ericnyamu
just get a grip on your emotions.if you are down 30% on your account just STOP trading
What's some advice around drawdown numbers to stop/pause?

How about what you do while you stop to improve and when you know you're ready to come back?
  • #31
  • Feb 22, 2016 8:10pm Feb 22, 2016 8:10pm
if you do not want to experience many losses then you need to always use sl and Tp when trading. Trading using Tp SL and it will make us better able to minimize the risk of forex. So that our losses will not be greater
  • #32
  • Feb 24, 2016 11:24pm Feb 24, 2016 11:24pm
I think the lost should less than 50%, if more than that, we should stop trading and reconsider trading strategy and risk control plan.
  • #33
  • Mar 13, 2016 6:01pm Mar 13, 2016 6:01pm
I just limit the loss of 5% of the capital. it is a disadvantage that I can bear. therefore, I always use SL and Tp when trading in forex trading so the loss will not be great
  • #34
  • Jul 16, 2017 11:23am Jul 16, 2017 11:23am
As a newcomer I fall a great loss , sometimes has lost almost whole balance especially when tried to recover instant loss by revenge over trading.
  • #35
  • Last Post: Jul 16, 2017 11:51am Jul 16, 2017 11:51am
Revenge trading is the foremost symptom of emotions which is mainly considered the reason for losing in Forex. We have to control this common human nature by proper trading discipline. But cannot remove completely at all.
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