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- Sun Aug 12, 2012 7:30 am
- Forum: Testing and Simulation
- Topic: Drawdown Reduction Threshold
- Replies: 11
- Views: 6994
Re: Drawdown Reduction Threshold
You can reduce the number of contracts you trade when the drawdown exceeds, say, 10% and expand the number back when the drawdown is less than 10%. The duration of the drawdown then is approximately the same, and the recovery time will be approximately the same. The drawdown will be less deep. In ca...