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Out of curiosity, when you went from swing to scalping full-time, did your drawdown profile actually get smoother, or just faster?
A young bull asks an older bull:
“Hey, see those cows over there? I’d do that one, and that one, and that one…”
The old bull says:
“Relax. I’ll finish eating, walk down there, and take care of the whole herd.”
I’m currently leading the scoreboard with this one; I started at 39 cents
TBH, it was totally counterintuitive to me. My double digit swing drawdown was reduced to about 5% scalping drawdown. Due to my higher frequency of scalp trades, I was actually able to reduce my position sizing and increase my profits. Only several months I ago, I never would've believed that this was even possible.
That's the part that always gets me about higher frequency — it's basically the law of large numbers doing your risk management for you. More independent bets per week means the equity curve smooths out, so you can size down per trade and still compound faster. Makes complete sense once you see it, but it's the opposite of intuition, which says "more trades = more risk."
My structure is the mirror image, and I've made peace with it: fewer, larger, more correlated bets, so my drawdown is always going to be lumpier than yours. I can't smooth it with frequency — my edge has to live in selectivity and expectancy per trade instead. Different lever entirely.
The thing I'd worry about in your shoes is capacity. Sizing down while frequency climbs is gorgeous on a small-to-mid account, but does the edge survive when you scale it up — or do spread and slippage start eating the thin-margin scalps before the size does any good? Have you hit any ceiling there yet, or is it holding as you grow it?
When the gold market plummeted, I opened a short position, but then the price shot up sharply, so I jumped out and switched to a long position. And then the rollercoaster ride began. The market swung back and forth, but my stop wasn’t triggered. In the end, I lost a substantial chunk of my deposit in this sideways movement, all because I didn’t just stick with my single long position.
The market really knows how to get on your nerves
The market really knows how to drive you mad
When the gold market plummeted, I opened a short position, but then the price shot up sharply, so I jumped out and switched to a long position. And then the rollercoaster ride began. The market swung back and forth, but my stop wasn’t triggered. In the end, I lost a substantial chunk of my deposit in this sideways movement, all because I didn’t just stick with my single long position.
Relax man xD Let the market do it's stuff
May I ask what your trading decisions are based on?
May I ask what your trading decisions are based on?
Chill out, mate xD Let the market do its thing
You can see it in all the screenshots: on the ‘buy’ screens, we buy; on the ‘sell’ screens, we sell.
That doesn’t seem right.