Disliked{quote} David being a silent follower , I would like to ask a question about your max predefined loss level. i know it's a very personal question , but all the average littrature is speaking about the BS 2% risk. i know Claudia is always mentioning that she is using a risk value and not % ,I need to admit that I did not understand yet the difference between % and $ . David for every 1000 $ i'm willing to use 15% risk do you think it's reasonable or not enough ? Claudia if you could please explain the concept behind the $ risk compare with % risk...Ignored
Well, maxLoss is a subject about your pain tolerance. Mine is about 10%, that is if my account is 20k and I start open positions today I will close all positions if the equitity drops to 18k (-$2000). And will try to recover that loss the following days, increasing the lot size a little bit, normally the following day price will retrace enough to give you the chance of loss recovery.
That 10% doesn't mean that a particular trade has a 10% risk, that means that all the currently open positions have a maxLoss floor of -$2000, and that could occur with 1 or 15 positions already open.
David
