This is Bullsh1t...How can you trade with 1% of your account when you don't even know what your risk is? you have practically unlimited downside. You could wait 2 years or more for a position to come back positive but daily swap could easily have cleaned you out.
Telling someone to let their draw downs run is irresponsible and inappropriate.
What a wind up.
Peter
1% is 1%. you are a TA man.
You do not have unlimited draw down. Draw downs are time based buddy. You do not want to wait 2yrs for a market that is already at the top, so you scout for other markets. I will give you practical example. NZD and Euro have been in the negative for months, due to one reason or the other. That is not the end of the world scout around for other markets at the bottom. cast your net there and not at the top.
If you do not want to control draw downs and master it, then you will not make profits.
This is the truth.
Technically speaking, when you take a bell shape or smoothed averages, etc, what you are doing is statistically covering up errors or noise in the markets that you are supposed to be avoiding.
Errors arises due to what? They arises due to crowd mis-behaviours - panic, fear, draw downs, etc. Draw downs do not last forever, but future growth of all economies is forever. Simple simple simple.
If you take open your chart and see a particular market is overbought, what do you do?
you avoid it and find another markets. You do not need too much TA. Just common sense and control your greed and sentiments to false education.
So your enemy is nothing but ignorant - not knowing when these noises are in the markets.
Knowing is not insane but insanity is not having the ability to know when market is insane. My two cents always. Be knowledgeable and know how to defeat your enemies called draw downs, short sell, panic, fear.
The alternative is to trade and invest in fear and ignorance.