how to trade a slow bleed

Discussion in 'Trading' started by silk, Feb 8, 2003.

  1. ElCubano

    ElCubano

    this guy made 2mill last year.....and has lost 250k in first month and a half......you do the math......
     
    #31     Feb 10, 2003
  2. ... still missing the point :(
     
    #32     Feb 10, 2003
  3. ElCubano

    ElCubano

    I GOT UR POINT...trust me....:D ....keep in mind, we come from different Worlds amigo......but I get your point...

    Tell me something...at what point would it be a consideration to stop???
     
    #33     Feb 10, 2003
  4. On a proven positive expectancy system, I woudn't "stop"... I would simply trade in accordance with existing position sizing considerations...
     
    #34     Feb 10, 2003
  5. ElCubano

    ElCubano

    "Proven" as in past tense....as in "Proved" to be positive in the past......got ya....At what point would you stop?? can I get a number.
     
    #35     Feb 10, 2003
  6. Trade in accordance with position sizing considerations until histrorically calculated MAX DD is breached... then re-assess strategy... until that point, you can conclude nothing beyond being in an acceptable drawdown period in a positive expectancy system...

    ...what differentiates the successful from the failed trader is the ability to stomach a potentially long series of consecutive losses in implementing a positive expectancy strategy... a priori, one cannot know in advance when the equity curve can turn back upwards from a drawdown, for a positive expectancy strategy... slow bleed blow ups often originate from not being there for equity curve turns i.e. not executing a positive expectancy strategy on a consistent basis...
     
    #36     Feb 10, 2003
  7. ElCubano

    ElCubano

    Thank you for taking your time........You I guess are the one that is missing my point.......but i do appreciate you taking the time to teach me....
     
    #37     Feb 10, 2003
  8. That's OK... I am happy to have been of assistance...
     
    #38     Feb 10, 2003
  9. nitro

    nitro

    Patience...

    nitro
     
    #39     Feb 10, 2003
  10. :)
     
    #40     Feb 10, 2003