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Re: The learning cycle for a newbie trader
quite true - found mine in a most unexpected place :
Once youve found it tho youve gotta make money with it - there are many languages in the holy grail and heres the key....
When you have found a grail spend the time to optimise it to reduce max drawdown to below 10% when playing straight lots.
then find the optimum compounding formula to keep max dd below 30%
then trade it.
The important part is that the initial max drawdown is below 10% otherwise compounding will hammer the hell out of it and a system which wins flat trading may in fact blow your account when compounded.
and compounding is the key to wealth in this game.
my grail = 7% max drawdown uncompounded = 27.3% compounded 7:1
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