Originally Posted by
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So I was running through several montecarlo simulations, using various levels of risk. Most people recommend 1-2% equity risk a trade, which is fine. But is anybody trading above 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 amounts are somewhat mind-boggling ($10,000 beginning equity turned to $1b equity).
Of course, at greater risk, your drawdowns are going to be greater. At 5% risk, I watched drawdowns around 70% or above. I am unsure whether individuals can bear such reductions....