Lesson 20 – The perfect risk amount

MAX DRAWDOWN:-  4%  
RISK PER TRADENumber of Losses  
2%2
0.8%5
0.4%10
0.25%16
0.2%20

 Total of New Algo + 104.79% using 2% risk.

My largest losing trading pairs were:

24.GBPCAD-14.30%
21.CADCHF-7.66%
9.GBPJPY-7.64%

A consecutive loss does not mean a full 2% risk loss, the exit indicator most likely got me out of the trade well beforehand.

GBPCAD – 11 consecutive losses

CADCHF -10 consecutive losses

GBPJPY -11 consecutive losses

104.79% using 2% risk, change parameters to using a .20% risk level per trade which would be only 10% of 2% which allows 20 full consecutive losses before reaching the maximum 4% draw down level would leave you with roughly 10% profit from the numbers above and well in the safe zone from reaching the max. draw down levels.

GBPCAD -1.43

CADCHF -.76%

GBPJPY – .76%

The total drawdown – 2.95%

Buy Me A Coffee