Which prevents the advisor from making money. - page 16

 
Mathemat:

Unfortunately, this is how your account behaves. You can clearly see it in the Balance graph picture:

At first the risk per trade was 10%, which was a big drawdown on 16.02.2012. I have reduced the risk to 5% per trade and, as you can see, the drawdowns have decreased. If the risk is further reduced, drawdowns should decrease. But the growth of the deposit will slow down.

What kind of drawdown would be considered as normal?

As for adding more funds, it IMHO will only strengthen your positions.

 
valenok2003: What kind of drawdown can be considered normal?

You're not a little boy to not know the answer to this question. The drawdown that the trader (and preferably investors, if any) likes is normal. For some traders 5% is a lot, and for others even 50 is nonsense.

 
Mathemat:

I don't understand what "strategy confirmation" means.

The strategy is based on lots.
 
valenok2003: The strategy is based on lokas.
Well, as you can see, even locks do not save from serious equity drawdowns.
 
Mathemat:
Well, as you can see, even locks don't save from serious equity drawdowns.
What do you mean even? The only thing that saves from drawdowns is not trading! ))
 
Mathemat:
Well, as you can see, even locks don't save from serious equity drawdowns.
Have you seen trading without drawdowns? What do you think is the acceptable drawdown?
 
valenok2003: Have you seen trading without drawdowns? What do you think the allowable drawdown is?

No, I haven't.

If my investment is about 100 real quid, then 80% is acceptable :).

If it's on the order of 1000 quid, it's unlikely to be more than 30%.

If I'm investing $10000 or more, hardly more than 10%. And the bigger the amount, the less permissible drawdown for me.

 
Mathemat:

No, I haven't.

If the money invested is around 100 real quid, then 80% is acceptable :).

If it's about 1000 quid, it's unlikely to be more than 30%.

If it's 10000 quid or more, it's hardly more than 10%. And the bigger the amount, the smaller the allowable drawdown for me.

Buffett doesn't know about it, or he'd drown himself.) His billions in 2008 were said to be worth 50%.

And there's 10 grand here.

 
paukas: Buffett doesn't know about it, or he would have drowned himself.) His billions in 2008 were said to be worth as much as 50%.
Buffett, the lunatic, doesn't have any stops, obviously.
 
Mathemat:
Buffett, the loon, is working without stops, obviously.
You don't say. He's been sitting on it for years.
Reason: