"Decrease your trading volume when you are trading poorly; increase your volume when you are trading well." - Paul Tudor Jones I am sure that this rule is required to achieve a long term success in trading. However I am having a little difficulty in following it strictly because I don't understand very clearly what is the reason behind it... Why would I make more money (or lose less) if I follow it? Such rule can be justified only if we accept the existence of trends in a trader's equity curve. If you believe that such trends do exist (WHY?!?), then do you "trade" your equity curve?