Gertje wrote:A lot of people see DD as the worst thing in trading.

The way I look at it is that the trading is like an athlete. To make a high or far jump, a athlete needs to take some distance back, and then after a sprint make the jump for the medal.

In trading, the DD is the distance, and the trend is the track where the price makes the sprint to claim the medal at the TP.

So DD is actually a necessary part of trading.

zentauro67 wrote:In the worst outcome, we could trade the old way, 240, Stoch 5,3,3 AO and pivots. To avoid DD there are many possibilites: a slow macd, wait for retrace trendlines being broken, etc.

Info page is another history. It should be very sad to lose such a great tool.

spillini wrote:After entering 4 pairs Sunday night:

EUR/GBP Long
AUD/JPY Short
EUR/CAD Long
EUR/AUD Long

I was drawn down quite a bit last night. Stuck to my Guns and I am now up 10%. Limits were hit on EUR/CAD & EUR/AUD at 1.3524 and 1.3541 respectively.

Still open on Aud/Jpy with T/P @ 95.56 AND eur/gbp @ 85.70 LOOKING FOR THAT 20% FOR THE WEEK.

BTW: Got stops pulled up so I can only go to +5% for the week....Im not stupid...LOL

Jim

TraderDesk wrote:Floating Draw-Down is a value I watch carefully. My Risk Management ruleset disallows large percentage amounts as I need every penny of capital to make money for every open position I set forth.

Anything above 10% on a real account I start to close the shakiest positions that I have. It doesn't matter if I am told by the best of the best that the trade will eventually go into profit or by my local tarot reader that the cards are in my favor. I close positions to keep floating draw down below 10%.

If my daily equity draw-down is more than 3% I do not open any more positions, period. I must wait till the next day to look at what I can set up. This is very important to me as I can get frustrated, caught up in price action, family issues, etc so it gives me a time out to clear my head and look at the market with a fresh perspective. This works for me.

Both types of draw-downs are important and actually crucial to me for being profitable long-term...

MrLong wrote: It's tough right now, the forex market is not moving.

nicoacademia wrote:

TraderDesk wrote:Floating Draw-Down is a value I watch carefully. My Risk Management ruleset disallows large percentage amounts as I need every penny of capital to make money for every open position I set forth.

Anything above 10% on a real account I start to close the shakiest positions that I have. It doesn't matter if I am told by the best of the best that the trade will eventually go into profit or by my local tarot reader that the cards are in my favor. I close positions to keep floating draw down below 10%.

If my daily equity draw-down is more than 3% I do not open any more positions, period. I must wait till the next day to look at what I can set up. This is very important to me as I can get frustrated, caught up in price action, family issues, etc so it gives me a time out to clear my head and look at the market with a fresh perspective. This works for me.

Both types of draw-downs are important and actually crucial to me for being profitable long-term...

yup.
i totally believe setting yourself up to survive must be the bedrock.
daily loss limits and position limits are excruciatingly crucial.
it provides the *BREAK*
that we all need when we hit our own losing streaks/perception failure streaks/etc.

as to the actual amount of floating DD that i guess only the trader himself can adjust.
the pairs amount / number of open positions.
the pair volatility.
where you are in the trend and price range/price scale.
upcoming calendar events.
size of candles already displayed.
whether the market has shown its hand.
a front running type trade or a reactionary trade.
i think there are too many variables.

its like every gardeners garden has its own weeds/bugs/weather/plantspecies etc.

but at the end of the day. the garden must still be around tomorrow.