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If well-off people are eating their principals, it's because they're trying to live above their means. Which just proves the rich are no smarter than the rest of us. Middle-class folks buy houses they can't afford, drive cars they can't afford and buy toys they can't afford and for the most...

+10 I tried educating him on why he was wrong about position sizing. You can lead a horse to water but ...

How does "only risk 1% of your account balance on any single trade" give you an edge? You're the one who brought up position sizing in an edge thread. Strictly speaking, position sizing is separate from edge. If your strategy has no edge, the only logical position size is 0%. Many are...

Agreed, except for optimal position sizing. That's a separate science from signal timing.

No, thanks. I prefer optimal position sizing, not scaredy-cat position sizing.

Where do you come up with 3 times the risk? Why not 2 times or 4 times the risk? I've seen this "three times" formula elsewhere in trading. Has 3 become the magical mystery number of some holy grail?

Ignorant article. The author can't envision using MAs beyond the old crossover crap which is so last millennium. I doubt he's even aware of moving averages that don't fit into the sma/ema box.

Thanks for the warning. On ignore.

Isn't it illegal for kids to trade? :confused:

I seriously doubt the "obvious" thing you've discovered bears any resemblance to the "obvious" thing the OP was going on about. Just sayin'. Note: not questioning the validity of what you discovered, just saying it probably isn't the thing that motivated what I consider to be a thread...

It is kinda weird that you designed those things yet you have no idea if they're any good. To me they look worthless however I have no idea what you were trying to accomplish. But you do. So what is it?

+1 As to RN's conceit that some of us just don't "get" this thread, it all boils down to whether you can correctly guess whatever idiocy and/or insanity the OP (who hasn't been seen here in 4.5 years) was dangling in the first post. As if he had a freaking clue about how to win in the...

What makes you assume that $5k loss is due to "normal" system dynamics and not due to the evaporation of your edge? The markets are constantly changing. Maybe it's evolved beyond your system, at least long enough to blow your theoretical drawdown right out of the water.

People who obsess over drawdowns are risk-averse. IMO risk-averse people make poor traders. Trading is inherently risky and it favors the risk-seeking and the risk-neutral. JMO The goal should be to maximize net-profits, not minimize losses. Profit maximization will involve some risk...

Everything about trading is easier said than done.

You asked if you should change strategies. The answer is yes, and it has nothing to do with months (unless you're using some weird month-dependent strategy). Sometimes price is trending and that's when you want to use a trend following strategy. Sometimes price is choppy and that's when you...

When your trading instrument is trending, you want to use a trend following strategy. When your trading instrument is choppy, you want to use a RTM strategy.

The full fraction if it's a single position. Half-Kelly for each subsequent simultaneous position.

The Kelly fraction.

Nothing difficult about just using the gummy fraction (qv).