Ok so if you are trading this system, the biggest loss in 16
years was 3.36% see #7 from the SPY System info page:
"7.Largest losing trade was -3.36% with the
average losing trade being only about 1%.
Note, for the Multi Entry
system, the largest losing trade was only -1.3%"
IF YOU TRADE THE SYSTEM AS OFFERED, THE DRAWDOWN IS IN REALITY
MEANINGLESS.
You only need to worry about draw downs if you are trading
futures or some other highly leverage or margined instrument. And
if you are, then you are beyond the parameters of this system and
MUST take full responsibility for any losses you incur.
Is it human nature that we won't accept a very good system
without messing around with it first? Or are we all so greedy that
we must find the maximum way to get the maximum return?
I say dittos to dougmil's post just before this one!!
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drawdowns? Ignore 'em
You Are Going To Have To Make An Important Decision
Posted by perthx on 6th of May 2011 at 04:55 pm
Ok so if you are trading this system, the biggest loss in 16 years was 3.36% see #7 from the SPY System info page:
"7.Largest losing trade was -3.36% with the average losing trade being only about 1%. Note, for the Multi Entry system, the largest losing trade was only -1.3%"
IF YOU TRADE THE SYSTEM AS OFFERED, THE DRAWDOWN IS IN REALITY MEANINGLESS.
You only need to worry about draw downs if you are trading futures or some other highly leverage or margined instrument. And if you are, then you are beyond the parameters of this system and MUST take full responsibility for any losses you incur.
Is it human nature that we won't accept a very good system without messing around with it first? Or are we all so greedy that we must find the maximum way to get the maximum return?
I say dittos to dougmil's post just before this one!!