Originally Posted by
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quote Agreed. 5 percent risk per trade is far too large for my liking. It is not merely 10 losses in a row which will halve an account, it's any sequence of transactions where the losses surpass the wins by 10. For example, L-L-L-L-W-L-L-L-L-W-L-L-L-L where there are no longer than 4 consecutive deficits. At 5 percent fixed frac, that is (0.95)^12 x (1.05)^2 = 0.595 or 40.5 percent drawdown, from that it might demand a (100x40.5)/(100-40.5) = 68% yield on the remaining equilibrium merely to regain to BE. Not a happy situation. I guess that people who risk up of 5 percent have not...