Daedalus - Yes, I agree. However I would add that the key here is based on what you are prepared to lose. Take the largest losing streak in your system and double it (the market can always do far worse in the future than in the past and we need a margin of safety). Lets say the historical worst is 10 losses in a row. If you were to face 20 what % loss of your account would you be comfortable with. For those who trade a 5% risk model they have just been wiped out! This gives you a maximum past which you would not go. Taking your approach Sweet Pip (love that handle) would be ultra conservative but very safe. If you can attain your goals whilst keeping the risks to an absolute minimum then fantastic. Most professionals seem to risk around 0.5% or less which is worth thinking about.
Daedalus - I find your posts some of the best and most constructive on the site
|