I believe I was negative on Don a while back because of some of the tactics he used. However, I gotta admit that I found this Trading After Dark video very informative, honest, and useful. Good job Don. http://www.youtube.com/watch?v=r_XRet7J7wY&feature=player_embedded Now, the question is what do you guys think about this trading method? His stop management is somewhat similar to what I do.. at least one of trading styles. I have several. But, I will always use a catastrophic stop which can result in large losses. He's correct in that even such a stop is going to hurt the net return. However, it does reduce the maximal risk per trade. The downside to using large stops or no stops are following: 1. Hard to get leverage for maximal return or even meaningful return 2. Take unlimited risk if you don't have a hedge of some sort. 3. If you do use a large catastrophic stop then you don't have the unlimited risk and you get most of the benefits of not getting stopped but you will have some occasional big hits. 4. Obviously, he's trading a huge account and to make meaningful return with a more modest account using these techniques seems to be more of a stretch. In terms of near extremes, I like always knowing okay this is where I'm getting out. I don't ever want to be in a place of hurt, in a world of hurt that can happen for those who don't have stops. His strategy would seem to have a equity curve similar to naked put selling. He would profit almost every single day except possibly the one day out of the year that could blow out this account. Think about 1987 or even today if he was sized large. I get the impression he's trading far more skilled then Hoffman and he's not averaging down mindlessly. And, I certainly agree what he says about the catching the tails because I caught those tells really well. And it was extremely volatile. But, I'd like to some opinions. I know that some are using max size with very tight stops. This method is based on the premise of minimum time in market and highest probability trade. But, also, your cost of doing business is higher and probability of being stopped out seems to be likely random. This kinda goes back about the usage of market vs limit order too. Market order is favor if you know the immediate the direction of the market. Limit is favor if you know the maximum extent of the range. With limit orders often if you try to get that perfect fill you're only going to get it on the losers. So, that's part of why I wonder how these guys with tight stops are trading. For me I think it would be terribly frustrating and counter productive. However, I'm willing to look at all the styles and thinking about the relationship among the MAE and drawdown. Again, the problem with such a style seems to be churn, lack leverage for meaningful return, and possibility of extreme tail risk. Benefit would be the possibility of very consistent returns.