Our hero TrademanSpiff has an account with $50,000. He takes overnight trades and uses 2X margin. If our hero takes 10 positions of $10,000 each and puts a 1% stop loss on each ($500), what is his risk of ruin under the following circumstances. a) ten positions, 5 long, 5 short. b) ten positions, but five have break even stops. c) etc.... What I'm wondering is how great the R of R is under various circumstances. If there is a market meltdown but our hero has 10 short positions, presumably he will be ok. If the same meltdown happens with 10 long positions that have break even stops he will probably get hurt - but how hurt? Other than not trade, what prudent efforts can our hero make to minimize his chances of going BOOM?