Michael -- You make a very good point. I've chosen to go with
the multi-entry system, primarily for that reason. I've always been
a discretionary trader, and my trading style limits losses in most
trades to 5% or less, often much less (and a little more on very
low priced stocks). So for me it's a HUGE psychological advantage
to trade a system where the expected max drawdown falls in my
comfort zone -- less than 5%. I am having to adapt my psychology to
following a system, and it helps me a lot as far as making that
adaptation.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Michael -- You make a
drawdowns and multi-entry system
Posted by puma on 6th of May 2011 at 11:53 am
Michael -- You make a very good point. I've chosen to go with the multi-entry system, primarily for that reason. I've always been a discretionary trader, and my trading style limits losses in most trades to 5% or less, often much less (and a little more on very low priced stocks). So for me it's a HUGE psychological advantage to trade a system where the expected max drawdown falls in my comfort zone -- less than 5%. I am having to adapt my psychology to following a system, and it helps me a lot as far as making that adaptation.