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Originally Posted by Rufanuf
...that have found a system using massive leverage that may work for a while, but that is ultimately flawed and will crash. We all know its entirely possible to get 100% returns in a few hours if we take big risks with our account...
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That's just it. It's all about risk profile as it pertains to money management. Why does everyone think that just because you have huge gains, you have to crash and burn 2 months later? If a trader consistently and without fail works within the same risk profile, sometimes that trader will hit a streak and produce a massive gain, sometimes he will go into a period of drawdown. However, just because you're utilizing an aggressive risk profile doesn't mean that you'll crash and burn in 2 months.
I do agree that in these contests, the risk profiles are probably EXTREMELY aggressive, and not for the everyday trader - but that doesn't mean that they didn't back it down a bit after the contest and continue with only a mildly aggressive money management strategy.