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Sounds fine to me as long as you are a good trader. With that level of risk/reward you need to be right more than 60% of the time.

Read the original post, he said: "p.s. I dont consider events such as the flash crash as valid seeing how they are too infrequent. I am looking for reasonable protection not protection against every possible thing." He doesn't want to know about black swans, he wants to know about typical...

I don't think the correct question is how much do you allocate as much as it is how much do you risk. I might ALLOCATE 100% of my capital to a trade but only have a defined risk of 1% of my capital. Maybe that is your question... I allow every trade to lose 2.2% of my total capital. Of...

Huh? the Dow and SP500 are largely correlated so they are the same difficulty to trade. Yes, I know they don't move the SAME, but they are very close. They are certainly not different enough for one to be easier to "trade" than the other. The ES is so incredibly popular that, if anything...

The answer to your question depends on many variables. Are you asking how bad can a single trade go? I guess IF you were trading stocks it's safe to assume a stock could be up or down as much as 10% any given day. But if you are trading options then it's a different answer, futures is a...

Almost two years, no real long vs short bias, it's 67%long/33%short You have a good point about the 7/5 spread. Currently 5 points about .40%. So going forward, maybe I should have my Excel tell me the spread to use based on finding .40% of the current SP500. Makes sense why 7/5 works...

Hello fellow traders, I've lurked here for years and want to share my success story with the crowd. I started trading stocks in 2005 and made all the newbie mistakes. I am a computer programmer and I created some really cool systems but I was a bad trader. I took a very analytical approach...