Is there a formula that can figure out what the maximum number of consecutive losses your system can have?
I heard guys who average down blow up sooner or later.( LTCM, Barings Brothers and Sumitomo Copper.)
Yep. Came to the same conclusion. It's because it has higher win-rate right? So the higher the win-rate your system has, the smaller the size of...
Worst case scenario you get 11 losing trades in a row and lose 20% of account.
Lol. I think I know where the 2% rule comes from now. ;-) Losing 2% on 5 trades in a row equals roughly 10%.
I just compared volatility of both of them and the 60% is less volatile! (I risked 10% for both systems so the comparison could be accurate)
Yep, thats why I think people don't use Kelly criterion. I thought about it and I wouldn't want 1 bad trade to take out 25% of my account.:-) It...
Also another thing is that the optimal bet size for the 60% system is 25% while for the 40% is 10%. So the 40% system would have a less volatile...
Another thing is that I heard that most professional traders would go with the lower win-rate system because it is more "robust". Everything is...
Ah you came up with the formula yourself nice.;-)
Woah, where did you get this formula and what's it called? I also figured out that the 60% system is better but by doing it the hardway by doing...
Which system is better, 60%winrate/1:1RRR or 40% Winrate/2:1RRR? They should make the same amount right?;-)
It's simple. There was no liquidity in that area. Why is there no liquidity there? Now that is the question.
Same here. Took me a while to realize it. It's death by a thousand cuts. No risk, no reward.
Still buying usdtry?:D
LOL!
SPY Volume 35M, average 114M
Cool. We'll see how tomorrow is. Market closes at 1 Eastern.
Hi. Is it worth trading the week of Christmas & New Years? Is the market dead or can it still be traded?
Ok I read the next chapter of the book and I understand what he means. If it's a bull market look only for longs.
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