DislikedYou are the one being funny my friend.
Tdion is not talking bout blowing up the 100% of the account.
What he was saying is that whatever remain in the account has only a sole purpose - as margin. Henceforth, whatever is not more likely to be utilised should be directed elsewhere.
Example:
You have an 100k in your account. There's no point to keep the whole 100k if your startegy only risk about 2 - 5% per trade (taking into consideration that you will only open a maximum of say, 3 positions, simultaneously).
It is in fact stupid to keep that 100k in it. If you expect to lose that much you might as well use it to down pay yourself a house or something.
As mentioned, you won't need the whole 100k, so you might want to roughly reduce half of it.
For aggressive traders, we might want to trade more lots per position, hence larger drawdown % wise. That said, I'm risking more for more with my 100k. When you risk a 10% drawdown for a 10% growth and have more than 50% proven record you are doing pretty fine.
It all bore down to the preference and appetite of the trader. (Of course noobs should always follow strict MM). If you are following these 2 - 3 % drawdown risk MM even when you are well experienced, you are either
1. bluffing
2. you dun know your maths
3. bluffing
4. bluffing
5. a really conservative trader (to whom you shouldn't be traduing fx)Ignored
dude, can you read my other posts before getting all crazy mad? i already said that i agree with his system, i have said it REPEATEDLY. and liek you said, its all about preference. it goes both ways. he likes to trade agressively i trade conservatively. and that doesnt mean im bluffing.
ok, i think the biggest point im trying to make is that it depends on the way you look at an account. i trade my own money, but i also trade other people's money. i cant just go and blow all their money on a few trades. so therefore, i use the 1 percent rule. i am experienced, i know my math, i am not bluffing, but i still trade 1%. but the thing is, i dont have to be conservative with that rule. the way we work, we do 1 percent a trade, but we can have 5 trades open. thats five percent in case you dun know your maths baron. after those trades are closed, we can put more in. we can do this an infinite amount of times. we can have had 100 percent of the account open, but just not at the same time. also, this isnt a conservative strat. we put in a ton of trades somedays. we do it agressively. but we use the 1% rule to limit losses while still utilizing the margin of the full account.