Well I've just come out of two VERY nasty days of trading. Had 5 losses in one week (not that the weeks even finished) which is a first for me.
Howz my account? Dented oh yes, but I'm no fool. my risk is relatively low per trade so all I've lost is this months profit. Last months profit and my account is still intact.
Earnt a little of this months profit back this morning too.
I'm quite pleased my system has been able to handle a rough patch like this.
However I'm always interested in improvement.
Paul Tudor Jones in the book, Market Wizards, explains that when his systems are trading at their worst, he also wants to trade with the least risk.
This sounds effective and simple, but when you think about it it's very complex.
When do you scale down your trading size? At what point do you scale it up again?
One of the things that catches my attention is say I have two losers and decide to scale down my risk, when I start getting winners again, I'll only be trading with a small position! My losers were big and now my winners are small. I've basically taken the losses then missed out on a big part of the equity 'recovery'.
Any thoughts?
Howz my account? Dented oh yes, but I'm no fool. my risk is relatively low per trade so all I've lost is this months profit. Last months profit and my account is still intact.
Earnt a little of this months profit back this morning too.
I'm quite pleased my system has been able to handle a rough patch like this.
However I'm always interested in improvement.
Paul Tudor Jones in the book, Market Wizards, explains that when his systems are trading at their worst, he also wants to trade with the least risk.
This sounds effective and simple, but when you think about it it's very complex.
When do you scale down your trading size? At what point do you scale it up again?
One of the things that catches my attention is say I have two losers and decide to scale down my risk, when I start getting winners again, I'll only be trading with a small position! My losers were big and now my winners are small. I've basically taken the losses then missed out on a big part of the equity 'recovery'.
Any thoughts?