I was watching World Poker Tour a week or two ago and this guy Tuan Le was keep taking money from everybody until he got a little wishy-washy with his bets probably because he was so much ahead. After a tiny drawdown, he tightened up and played great again. I think the so called boom-bust cycle of individual performance mentioned by Soros has less to do with bio-rhythm, superstition or preconceived limitation but more to do with consistency. Just because the equity curve shots straight up doesn't mean some bad thing is about to happen unless one readily deviates from the plan when one needs the (prepared) plan most... making bad thing worse.
I have two rules written on a piece of paper sticking in front of me:
1) Trade the fixed fractional position size (No overtrading or scaling in).
2) Only trade my setup.
I trade ES intraday reversals and these two rules can be expanded into four:
1) Trade the fixed fractional position size.
2) Wait for time of day for my setup.
3) Trade in the direction of the bias.
4) Honor stop loss for the trade when enter incorrectly.
This is a patient game! No mental baggage.
I have two rules written on a piece of paper sticking in front of me:
1) Trade the fixed fractional position size (No overtrading or scaling in).
2) Only trade my setup.
I trade ES intraday reversals and these two rules can be expanded into four:
1) Trade the fixed fractional position size.
2) Wait for time of day for my setup.
3) Trade in the direction of the bias.
4) Honor stop loss for the trade when enter incorrectly.
This is a patient game! No mental baggage.