Why do you limit the maximum drawdown on the account? - page 14

 
jelizavettka:
Roman, if you find it, please send me the link. I want to watch this conference.

Everything to watch. And in general - the "coup" from the 44th minute.



 
sever32:

If you allow a drawdown of e.g. 20%, what is the purpose of the remaining 80% of the account? In this case, open an account with 20% of all funds and work for all. Trading with a max drawdown of 20% of the total amount available and trading with a drawdown of 100% of the total amount is one and the same.

I don't talk to anyone about it, but they all turn their heads. Maybe I don't understand?

If you do not know what to do with trader, you should invest 100% of your funds, i.e. not 100$ when the drawdown is 20%, but 20$ when the drawdown is 100%.

What's so wild about it?



This is a stereotype from books that were written a long time ago and for markets with little or no leverage. There you have to keep more money in the account than you are prepared to lose in order to provide diversification and acceptable returns.
 
Allow me my IMHO opinion, on the topic of the thread. I, too, for several years now, have a point of view like SEVER32 and thought I was some kind of idiot, following such principles of calculation. And just recently began to understand the opposite point of view - if you start from a random walk, then of course the conclusions about the percentage loading depot sound (as otherwise simply to count), but if you dance from the position of awareness of the situation, the calculations will have an entirely different look. There are no fools, just misunderstandings.
 
USSR:
Let me give you my opinion on the topic of the topic. I too have for a few years now, have a point of view like SEVER32 and thought I was some kind of idiot following such principles of calculation. And just recently began to understand the opposite point of view - if you start from a random walk, then of course the conclusions about the percentage loading depot sound (as otherwise simply to count), but if you dance from the position of awareness of the situation, the calculations will have an entirely different look. There are no fools, there is just misunderstanding.


If you look at it from any angle, holding unused money in a trading account does not give you any advantage. That's because

1. there is a risk of loss of funds associated with the office where the trading account is held

2. unused funds in the trading account usually do not generate income, even in the form of bank interest

I.e., the best principle is to use segregated accounts where the principal part of the deposit is kept in a reliable bank, which generates revenue in the form of interest, and the small part necessary to maintain the margin is automatically transferred to the trading account. You can do it yourself - self-segregation)). Of course, this does not affect the MM, and vice versa - MM determines what part of the deposit has sense to keep in the trading account, and what part in the bank. This means that if you use leverage correctly, it is an interest-free credit, and it is a sin not to use it regardless of your trading strategies.

There are also purely technical advantages. If there will be a huge gap over the stop level, the losses may be greater than planned. If on the trading account to keep a smaller amount, then you will not go in the red. But it is true that brokerage companies protect themselves from such surprises and schemes relying solely on this increasing their margin before the weekend.

 
You think I don't know what's going on... It doesn't take a lot of brains to put it on the balance sheet. For some reason, I think I will bring down any brokerage by my actions.
 
Avals:


It doesn't matter which way you look at it, keeping unused money in a trading account is notan advantage . That's because

1. there is a risk of loss offunds associated with the office where the trading account is held

2. unusedfunds in the trading account usually do not generate income, even in the form ofbank interest

I.e., the best principle is to use segregatedaccounts wherethe principal part of the deposit is kept in a reliable bank, which generates revenue in theform ofinterest, and the small part necessary to maintain the margin isautomatically transferred to thetrading account. You can do it yourself - self-segregation)). Of course, this does not affect the MM, and vice versa - MM determines what part of the deposit has sense to keep in the trading account, and what part in the bank. This means that if youuse leveragecorrectly, it is an interest-free credit, and it is a sin not touse itregardless of yourtrading strategies.

There are also purely technicaladvantages. If there will be a huge gap overthe stoplevel, the losses may be greater than planned. If on the trading account to keep a smaller amount, then you will not go in the red. Butit is true that brokerage companies protect themselves from such surprisesand schemes purely on this basisincreasing their margin before the weekend.

Yeah . ..I've never seenmore stupid thinking:) except for the Coon from alps... - it's a straightforward way to go down the drain... and only an idiot can not see(realize it)...

really... they don't belong in forex...

 
Aleksander:

yeah .. .that' s the dumbest reasoningI've ever seen:) except for the Coon from the alps... - that's the way to the bottom... and only an idiot does not see it(realize it)...

really... they don't belong in forex...


enlighten the dark one as to the idiocy ;)
 
Aleksander:
yeah... that's the dumbest reasoning I've ever seen :) except for the Coon from the alps... - that's a straightforward way to get screwed... and only an idiot can not see (realize it)... really... they don't belong in forex...
So you don't belong here either, see here's the thing. Here you are a good man, but a whistle blower.
 
USSR:
So you don't belong here either, see, that' s the thing. I mean, you're a goodman, but you'rea whistle-blower.

here's the thing... I can whistle all I want because I'm a forex man and I've made hundreds of dollars out of it... unlike a lot of people who write here... no matter how clever they are...

and it's fun for my ego to watch them babble on about a handicap... G y y y y y :)

 
Aleksander:

here's the thing... I can whistle all I want because I'm a forex man and I've made hundreds of dollars out of it... unlike a lot of people who write here... no matter how clever they are...

and my ego is really fun to watch them babble on about handicaps... G y y y y y :)


Answer for an idiot.) - where exactly in that post is the stupidity?

p.s. i hope these experienced forex pimps know what segregated accounts are))

Reason: