Man...you were bragging about making 1/2 pips a day trading with some insane leverage. The writing was on the wall. Nice run but something does need to change.
It strikes me that losing 60pc is like 2 months' profit. If it were a lower risk eg 40pc I have a strong conviction it would be an easier recovery and smoother equity curve. Accepting of course that 0.0 % risk is the smoothest equity curve but contains no opportunities for better.
Average has been about +50% a month so over the next few months, it may be back on tack and back in profit. -60% isn't bad if the system is inaccurate about once every 12 months.
Again, what I would do if I was leveraged just 10% per trade is increase the risk right after a bad trade and should get it back rather quickly. This will will take a little longer.
Again, what I would do if I was leveraged just 10% per trade is increase the risk right after a bad trade and should get it back rather quickly. This will will take a little longer.
What would you consider a good sharpe ratio? What do you aim for?
Ok, you do talk a lot of sense, I'll give you that.
You mean like martingale?
lol. 60% account risk. anyone figured out that hes compounding? So stupid. This will always end in tears.
I tried to find the definition as to what you mean by martingale and found this.
It is a method of gambling in which one doubles the stakes after each loss.
More details I found here.
It isn't gambling as much as calculated risk where the odds are with me. However, I will only increase the risk for just a few trades to regain the loss and then lower it again. And, while everything is considered "risky" the chance of having 2 bad trades in a row, well is next to nothing. Just my opinion, of course.
According to your horrible Sharpe ratios, the odds are not in your favor. Also, making some basic assumptions, your chances of failure per trade can be thought of as independent. Hence, it makes no sense to do something only momentarily, because if it is advantageous to do it for that moment, it should be advantageous to do it forever. Basically, raising the risk for a few trades possibly to recover some of your losses is just something your weak psychology needs to adjust itself to the loss. Unfortunately, the catharsis is just delusion: all you've done is made things even worse by putting more risk into your horrible trading system.
It isn't gambling as much as calculated risk where the odds are with me. However, I will only increase the risk for just a few trades to regain the loss and then lower it again.