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GOLD, Gold and XAUUSD - page 148

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moskitman #:
Well, then I’ve got some news for you that’s just as bad...
What is it?
Satan Claws #:
Which one?
Your system… how shall I put this gently… isn’t working. It’s not turning a profit. ‘Go no’ in English.
moskitman #:
Your system… how can I put this gently… isn’t working. It isn’t turning a profit. ‘Go no’ in English.
Why? Sometimes it works. For example, in August I made an 8.8x return and even made it into the winners’ list of a broker’s competition.
Satan Claws #:
Why? Sometimes it works. For example, in August I achieved an x8.8 return and even made it into the prize-winners’ list in a broker’s competition
OK, so what do you think is going wrong then? Where are these frustrating slip-ups coming from?
moskitman #:
OK, so what do you think is wrong then? Where do these annoying mistakes come from?
Well, it’s cutting out on the bends, the oversteer is severe, and I’m terrified of the oversteer.



I will take up the post

4120 – the strongest support
Satan Claws, you asked how to overcome asymmetry. In my opinion, there’s no way; you can only prevent it from coming into play.

With small drawdowns, it’s barely noticeable: after a -10% drop, you need a +11% gain; after a -20% drop, a +25% gain. It really kicks in after a -40…-50% drop, at which point you’d need a +70…+100% gain. Hence the formula: keep your position size such that 8–10 consecutive stops don’t push you deeper than 20 per cent. That works out at exactly 1–2 per cent risk per trade.

And as for ‘drawdowns being scary’ – in my view, it’s the same issue. When 10–20 per cent of your account is tied up in a position, any pullback looks like a disaster, and you end up closing the position prematurely. When only 1–2 per cent is at stake, a pullback is just a pullback; you can calmly ride it out until your stop is hit.
,
Excuse me, but which of these reflects price behaviour?
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