meanreversion
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Though if you lose 50 trades in a row you're doing something wrong.
The schoolboy arithmetic presented on this thread is irrelevant at best, misleading at worst.
No-one ever lost 50 trades in a row, so this sort of calculation is pointless. What is more meaningful is when a strategy wins 2, loses 3, wins 1, loses 2, etc., i.e. equity curve is inexorably heading lower. So for example, after 40 trades at 3% a time, there are 15 winners and 25 losers (in no particular order), the trader is now -20% or so.. what is the appetite to continue with this particular strategy or style of trading?
I would think most people start to get cold feet at -30% (unless they really know what they're doing).. the strategy is then changed/abandoned, or bet size is increased, to "make the money back", and THIS is what causes problems.
The solution is to start off with a smaller stake size until you're comfortable with what sort of drawdown your trading style might produce. 3% per trade will almost certainly lead to DD in excess of 30% - if you can live with that, fine, then go with it. But it is impossible to arrive at this number by simply typing 0.97^20 or similar into an Excel spreadsheet.