Showing posts with label drawdown. Show all posts
Showing posts with label drawdown. Show all posts

Tuesday, January 27, 2009

drawdowns

I've been busy on designing new systems that would be profitable since the last post. For now, 4 (amybe 5?) different systems are in my lab and I am using 2 of them in real trading, and the other 2 are waiting in the line. Why? Because the combination of all of 4 requires a big account that could save itself from big drawdowns. Drawdowns are one of the main threats (why not "only" but "one of them", I will explain later) for a system. Sooner or later, an average system will produce positive outcomes. But for small traders who are trying to follow a system, entry point (not of a trade but of a system) could be very important.

What is drawdown? There are some info in here and here. Check them out. I will share my ideas about systems and my trade results later.