How to never get an account wiped out?

Quote from gg12:

06/20/07 -58.2%
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Gosh! These are really extreme moves. I guess your average has come down below 0.5%. Not really much to show for that volatility. I believe you must have done some backtesting before starting with this strategy? Was the expected compounded average as high as 3.0% per day which you are aiming at? I will understand a 90% drawdown if the expectation is really as high as that.
 
neke

Performance is bad. I am switching between long and short strangle all the time.

Need to rethink my strategy again.
 
06/26/07 +3.5%

Back to writing bear call and bull put spreads (digital options) on the Dow.

I know that I am starting from scratch.
 
Intraday movements are gigantic!!! More than 200 Dow points intraday.

Not good for shorting options which is my core business.

06/27/07 -34.3%
06/28/07 +21.9%
06/29/07 +10.4%

Don't confuse the absolute values. Need log to compare.
I am nearly at my start point at 01/03/07. That's 119 days ago.

But the account is not wiped out since 119 days (searching for something positve...).
 
07/02/07 -10.7%

NEVER FIGHT A TREND!

In most cases even in a sideways market the trend will finally continue. More continuations than reversals!?
 
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