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- Mon Jul 28, 2003 9:10 pm
- Forum: Trader Psychology
- Topic: Dos and Donts of Drawdowns
- Replies: 23
- Views: 23190
My $.02 worth is that as part of your system development, you should establish a hard floor on the drawdown you will tolerate. Your backtesting should give you a good idea how wide this ultimate stop should be. You SHOULD NOT ride an Enron all the way down to zero, or let an open short position go m...