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nzbryant · 17-02-2005, 02:45

Yeah - that works, but its not the answer. Once your account gets large, 2.2% bets (which are optimal for my strategy (Monte Carlo tested)) even that or even 1.5% gets scary as the cash in absolute terms is getting large. I risk $700 per trade, which is scary - though if I cut size I'll never get anywhere. If I do 1% risk trades I cant make more than about 20-30% per year. If I do 2.1% I can make 100% a year (compounds so not linear) with 20% drawdown.

17-02-2005, 02:45	#54
nzbryant level 3 Join Date: Aug 2004 Posts: 101 Downloads: 0 Uploads: 0 Rep Power: 0	Re: The learning cycle for a newbie trader Yeah - that works, but its not the answer. Once your account gets large, 2.2% bets (which are optimal for my strategy (Monte Carlo tested)) even that or even 1.5% gets scary as the cash in absolute terms is getting large. I risk $700 per trade, which is scary - though if I cut size I'll never get anywhere. If I do 1% risk trades I cant make more than about 20-30% per year. If I do 2.1% I can make 100% a year (compounds so not linear) with 20% drawdown. __________________ Dave