If you can come up with a system that is 95% profitable, then you can refine it so it doesn't lose 35% five percent of the time. Traders simply can't expose themselves to that kind of risk.
Basically you have to replenish your entire account every 60 trades, which is an absurd frequency unless you are making enough on the other 57 trades to warrant the risk, which is basically absurd risk.
You say 5% are 35% loss...that's impossible to predict...if you trade 500 times, 25 will be huge losses, but while those 25 may be an average of -35%, some will no doubt be more.
If its a profitable system, and everything you say is fairly accurate and duplicateable, then have 2 equal size accounts, using the second to fund the losses of the first. However remove all profits from the trading account so that principal is at risk, and available to reinvest if and when necessary.
That's my take, but I'm with everyone else, a system that has such frequent massive capital fluctuations like that can't survive imo. (you also have to account for technical setbacks and errors, non-fills, etc. too)
And I'm also with others too, not believing that any system could have 95% successful trades (especially since 1/2 of the trades are closing the position.
)
Basically you have to replenish your entire account every 60 trades, which is an absurd frequency unless you are making enough on the other 57 trades to warrant the risk, which is basically absurd risk.
You say 5% are 35% loss...that's impossible to predict...if you trade 500 times, 25 will be huge losses, but while those 25 may be an average of -35%, some will no doubt be more.
If its a profitable system, and everything you say is fairly accurate and duplicateable, then have 2 equal size accounts, using the second to fund the losses of the first. However remove all profits from the trading account so that principal is at risk, and available to reinvest if and when necessary.
That's my take, but I'm with everyone else, a system that has such frequent massive capital fluctuations like that can't survive imo. (you also have to account for technical setbacks and errors, non-fills, etc. too)
And I'm also with others too, not believing that any system could have 95% successful trades (especially since 1/2 of the trades are closing the position.
)
