Beginners should risk only 0.25 % per trade

This is a discussion on Beginners should risk only 0.25 % per trade within the First Steps forums, part of the Reception category; Originally Posted by EnlightenedJoe Actually foroom has stopped hiding his loss. He shows the loss and then calls it a ...

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Old Aug 13, 2017, 5:57pm   #9
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foroom lluzers started this thread
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Originally Posted by EnlightenedJoe View Post
Actually foroom has stopped hiding his loss. He shows the loss and then calls it a win.
where is evidence for new traders to confirm your purported claims?
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Old Aug 13, 2017, 6:01pm   #10
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Originally Posted by foroom lluzers View Post
where is evidence for new traders to confirm your purported claims?
Evidence here: http://www.trade2win.com/boards/trad...ml#post2947876
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Old Aug 13, 2017, 6:11pm   #11
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Originally Posted by EnlightenedJoe View Post
how does the post of a forum plank count as evidence?
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Old Aug 13, 2017, 7:16pm   #13
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foroom lluzers started this thread liquid validity used to trade 99 % per trade , he disappeared from foruns.
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Old Aug 13, 2017, 7:31pm   #14
 
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Originally Posted by itspossible View Post
I think i might have to get me one o them
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Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
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Old Aug 13, 2017, 8:19pm   #15
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Originally Posted by foroom lluzers View Post
liquid validity used to trade 99 % per trade , he disappeared from foruns.
I am curious what happened to New Trader. He's more your kind of guy and believed in the misinformation.
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Old Aug 14, 2017, 3:42am   #16
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Originally Posted by Dr. Toad View Post
If ~65% (the actual drawdown for your scenario) was even remotely close to 80%, I would be a millionaire by now. I agree with the intent of your post, but really even the 0.5% is completely arbitrary and not useful in my opinion. The amount you risk should in my opinion depend on factors including:

- How confident you are in your system --> should be based on backtesting and subsequent preliminary live testing.

- How much the market can accept without destroying the intent of your system. --> It is useless to size your position for an arbitrary risk value if your initial live results suggest that a certain size position reduces the strategy effectiveness. This is quite difficult to assess, but the very act of putting yourself into the market alters your strategy slightly. The point is to size your position to make this alteration insignificant. For example, it probably doesn't make sense to try and push a 1500 limit order through when the bid and ask volume is at 100 each.

- The frequency you make trades. If you make 20 trades a day, risking even 0.5% each trade may be foolish as that essentially puts ~9.5% of your account at risk each day.

- The size of your account and how much of it you can lose without impacting you. I typically only risk 0.25% or less per trade on untested systems. Really the size is determined from the expected drawdown of the system from backtests and the percent of my account I am ok with risking on the expected drawdown. So different systems may have different values.

As you can see, in my opinion there is no one magic number.
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Would you agree. , that the 2 Percent is quite high , considering experienced traders make mistakes?95 percent lose in this game ,2. Percent is part of the problem.
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