I had been running through some montecarlo simulations, with various levels of risk. Many people recommend 1-2% equity risk per trade, which is fine. However, is anyone trading over these values? I assessed a trading platform using 2,500 theoretical trades at 5% risk, 50% success rate, 1.25-to-1 reward-to-risk, and the numbers are mind-boggling ($10,000 beginning equity turned into $1b equity).

Of course, at higher risk, your drawdowns are going to be higher. At 5% risk, I saw drawdowns up to 70% or over. I'm unsure whether individuals can bear such losses.

Ideas?