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by Progster
Mon Jul 28, 2003 9:10 pm
Forum: Trader Psychology
Topic: Dos and Donts of Drawdowns
Replies: 23
Views: 24722

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...