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Originally Posted by rsmereka  I did not realize that the 50% percent that you mentioned in your post you were using.
I just finished doing a complete analysis of MD's performance since I have owned it and I was going to move it to 40% but chickened out. I am very concerned about 'the big one'. The mother of all losing trades. At 50%, I could loose half of my account 
Rick |
I think the SLs are around 30 pips? With 50% you get lot sizes that are 10X so an SL hit will mean about 1/6th loss of an account, but I looked at a past incident that had 3 close SL hits a row, actually it was 2 in a row and then another shortly later, and Lo 'n behold (!!), the power to dig itself out is equal to the weakness to which it fell, it recovered and went on to stellar heights, so that's what made me confident of this setting. Again, just like in Wizard of Oz, you tap your red shoes together and chant "the power to dig itself out is equal to the weakness to which it fell" (tee-hee). It's a leverage thing too because as you have those losers naturally with money-management by the X% the next trades will be that much lower, so you don't have same size losers, again that phrase applies to both going down as well as up.
jb