A scary equity curve - what should I do now?

Discussion in 'Risk Management' started by Amnesiac, Sep 11, 2006.

  1. We never know.
    This chart tells us little.

    Unless you tell us how you take each trade and the reasoning, we can't know if it is just good luck or else.

    How much capitals do you trade in the losing days and winning days?
    How many trades do you mak in the losing and winning days?
    Have you backtest or do research to see if your trading strategy works in favour of the probability?
    Are you impulsive when you make your traders?
    Have you set a well-defined plan or rule-sets when you trade?
    Do you implemented any good risk and money management?

    If your answers tend to be positive, you are not lucky. Otherwise you are lucky.

    If it is latter, I suggest you slowing down your trading pace. Or take a rest, not trade at all. Read some good trading books, doing research, implementing strict discipline, and trade again, or you probably lose back all your gains again when the luck is gone.
     
    #21     Sep 13, 2006
  2. man

    man

    you are lucky. to me you lost in a more rational way than you are winning now. reduce positions dramatically and keep a fraction inplace.

    i am not a discretionary, so i can't judge. but i would think that this chart does not at all reflect "learning".
     
    #22     Sep 14, 2006