Traders' Roundtable

- Drawdowns < 50%
- MAR Ratio > 1.2
- Returns > 35% for futures, 20% unleveraged stocks

- Drawdowns < 40%
- MAR Ratio > 2.0
- Returns > 50% for futures, 30% unleveraged stocks

This would be tested over 20 years using the same system parameters for each year and each market.

- Forum Mgmnt

A ...

if i am going on my own, i can handle a 40% drawdown, so i would take about 3.5% per transaction.

if i am managing client money, a lot of investors who want really high returns start getting nervous in the 30% range. after several thousand runs, there is a tiny % chance that we will experience a ...

eck wrote:how many trades do we get, or do we trade in perpetuity?

Trade in perpetuity. Assume the opportunities are infrequent e.g. 3 or 4 such trades per year.

Consider the following two traders:

Joe Trader has 100k closed equity
His identical twin Jack trader has 80k closed equity and a position in commodity X, showing 20k open equity. They thus have identical total equity.

Now, assuming Joe and Jack have identical risk tolerance, net worth, performance ...

What % of your net worth (not account equity) would you risk if presented with the following hypothetical trade opportunity:

Reward to risk ratio: 5 to 1
Probability of profit: 75%

Assume the market will not gap beyond your stop, and that you either take the full profit, or get stopped out for the ...