How small do you trade after a decent size loss?

was a fluke or did you break rules?

if it was a fluke, then forget about it & keep trading.
if you broke rules, then trading smaller probably won't help...
try not watching for a little bit and take a deep breath.

then come back with a big grin and kick some ass.
 
Agreed 1% risk. I do not ever change my rules after a decent size loss. What will happen is the next trade will be a huge winner but instead of using your normal size you took it with 1/5th and the gain does not over take your previous loss.

Size should be determined by the strength of the initial setup. (ie: are we going against a trend or with one)
 
battle, I dont understand why you trade smaller after a large win, or winning streak? please elaborate, unless IT is a monster gift and your systems auto adjust daily based on each days PnL, I dont see the logic. everything I have been told, and read has the opposite mentality.
 
how does it make sense from a mean reversion point of view? all my systems are mean reversion, and as daily PnL scales up, so does the base shs size. i am not arguing, just would love to hear the logic...
 
After a huge gain the next day of most systems will usually produce a small gain or even a loss.

I see a lot of traders watch a good system make huge gains for multiple days. Then jump in full size. Well, thats right about the time it starts to enter a draw down period. This is the equivalent of a newbie chasing a huge uptrend intra-day.

The best thing to do would be wait for a few back to back losing days, then start.
 
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