why should I suffer such drawdowns? even if I should get all my losers in a raw I would still be down by a few % as while I may allow in some rare cases a loser to go down to 1% or 2% of my account most losers are a fraction of that as normally I get out well before my max risk...
How much do day traders make
- Thread starter newdog
- Start date
i dont know enough numbers here to throw and exact answer, but all iam saying is even at such unreasonable high win ratio u could still suffer draw downs, also ur assuming a small size account based on ur saying of u always get out way before max risk, great, in big accounts u might not have that luxury of getting out when u want
iam none the less a believer like u that we can small (yet well studied) traders can make higher returns than the average market or even the top funds in terms of percentage and thats because we have flexibility, liquidity, and no pressure to perform or report earnings every so often, i just dont know if 80-90% returns as ur mentioning coupled with ultra low draw downs of 1-2% are possible, they might i just never seen it,
and i dont know what size account ur talking about that gets hit all the losers in a row and doesnt suffer more than 2%,,, feel free to put numbers and percentages and ill be more than happy to do some calculations together for us both to learn and conversate and debate
I am not saying that I would stop trading once I have made enough not to need trading, but I simply would not do it out of such a huge account, I would diversify and put my money in different places, even brokers fails and I wouldn't want to fail with my money...
well, my account is about 50K and growing about 1% - 1.5% a day...and i dont know what size account ur talking about that gets hit all the losers in a row and doesnt suffer more than 2%,,, feel free to put numbers and percentages and ill be more than happy to do some calculations together for us both to learn and conversate and debate
Why do most people on ET always discuss small points and never the whole picture?
That is completely nonsense.
Drawdown should be discuss at least in relation to performance, size, time to recover, capital management and probably a lot of other things. The complete system should be taken in consideration.
What is the best option:
Is the lowest drawdown the best solution? Or should you maybe watch the whole picture?
If you buy a car, what is important in relation to safety? Only the breaks?
That is completely nonsense.
Drawdown should be discuss at least in relation to performance, size, time to recover, capital management and probably a lot of other things. The complete system should be taken in consideration.
What is the best option:
- Drawdown of 10%, time to recover 6 months, investing 100% of available capital, return net 10% a year. R/R ratio 2:1.
- Drawdown of 30%, time to recover 7 days, investing 10% of available capital, return net 100% a year. R/R ratio 7:1.
Is the lowest drawdown the best solution? Or should you maybe watch the whole picture?
If you buy a car, what is important in relation to safety? Only the breaks?
It is impossible to trade while never having a drawdown.
if you think it is possible I would like to know how.
If you start to trade and your first, or second trade is a (small) loss, you already have a drawdown as your account will be lower than before the losing trade.
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Sure you are...