By all rights, your drawdown is pretty huge as it is. How much more will you accept? I understand the point you are trying to make. Tough way to do it though. Yowzers.
Losing days
- Thread starter Millionaire
- Start date
By all rights, your drawdown is pretty huge as it is. How much more will you accept? I understand the point you are trying to make. Tough way to do it though. Yowzers.
Based on the backtest i could get a 60,000 GBP (78,000USD) drawdown from the most recent high water market.
It could be bigger as forward live trading drawdowns can always exceed those in the back test.
If you want X sized returns you have to take X sized risks.
If you only want to take max 10K drawdowns in your equity you are going to struggle to make six figures a year. Perhaps a few traders can do that but most traders cant achieve anything close to a annual 10:1 return/drawdown ratio.
I aim for around 2.5:1, annual return to drawdown ratio. So if i'm able to take a 60K GBP drawdown i want to average around 150K GBP a year.
It could be bigger as forward live trading drawdowns can always exceed those in the back test.
If you want X sized returns you have to take X sized risks.
If you only want to take max 10K drawdowns in your equity you are going to struggle to make six figures a year. Perhaps a few traders can do that but most traders cant achieve anything close to a annual 10:1 return/drawdown ratio.
I aim for around 2.5:1, annual return to drawdown ratio. So if i'm able to take a 60K GBP drawdown i want to average around 150K GBP a year.
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78K drawdown. Thanks a bunch for that backtest!
X-size blah for X-sized blah.
So, Millionaire, what are you doing live? You drawing down $80,000? $200,000? $3,000,000?
Jiminy crickets.
You didnt let me finish editing my previous post. At this stage, im expecting max 60KGBP/78KUSD drawdowns and looking to make around 2.5 times that a year.
I think a 2.5:1 ratio is achievable with smaller accounts.
I did not know you were editing your previous post. I am not a mod/admin of this site.
OIC. $60K drawdown. AB FAB! How much money you have in your account that you can suffer that drawdown? Please tell us, the wee lots of traders that scurry around the trading pits like rats looking for cheese bits. Yes?
You want private information, all i will say its more than enough to cover a 60K drawdown. Plus enough left to cover margin requirements to continue trading after 60K has been lost.
I did not ask you for private information. All I asked is how much money do you have in your account so you could suffer a $60K drawdown?
I did not ask you for your name, your address, your phone number, your SS#, your bank, your country of origin, your gender, your e-mail addy.
I did not ask you for your mother's maiden name, I did not ask you for a security question involving your favorite pet, your school of graduation or your first job interview.
I did not ask you the name of your first girl or boyfriend. I did not ask you your favorite color. I asked you ZERO personal information. I simply asked you how much money you had in your capital account that you could be comfortable with a $60,000 drawdown.
That's all I asked.
There is a difference between personal and private and anonymous.
Personal information isn't always private.
Like your name and address isn't private, it will be on several public registers, but not traceable back to your anonymous internet ET handle.
Your private bank account information is most definitely private and confidential.
Now even though i am anonymous i would rather not divulge any more of my private confidential information than i really need to.
Again...I did not ask you for private information. All I asked was how much capital you had in your account that you could be comfortable with a $60,000 drawdown.
The account balance would be irrelevant. Probably what would be more important would be liquid net worth. At a minimum if some one was prepared to lose say 100K trading i would expect them to have a liquid net worth of several times that amount. I would say 300K to 2million. Depending on the person.
Lower amounts are different.
So one might have 10K liquid net worth and be prepared to lose 100% of that trading because they can get a job and re-save 10K quickly.
But 100K or 1million is a different matter.
You would need a net worth of several times that to be ok with losing it in a trading drawdown.
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