ilmscore | Prediction Details
"If you do all this testing and you test every strategy you plan to put in your trade plan, put it in a spreadsheet, as long as you've tested the right the correct amount of trades, and no one can tell you what that is. there's a number that floats around that says you can get a pretty good idea of how a strategy will work off of 100 trades. For me, that's not enough just because I'm don't feel very confident only having a 100 trades to go by. So, when I've tested all of my strategies, I've always tested 200 trades. And once you have those trades set in a spreadsheet with your stop- losses, your profit targets, the amount of trades that won and lost, then you can start to set up a risk management plan. Then you can see, okay, this strategy is going to come with a 20% draw down. This strategy is going to come with 10 losers in a row. Well, if I'm trading on a $10,000 account and I know it could have 10 losers in a row, I know for sure I don't want to be risking a very high amount of money per trade. You could not risk $1,000 per trade if you knew your strategy has produced 10 losers in a row at one time."
By The Trading Channel (The Trading Channel) | January 12, 2016 | Pending
From video
Forex trading - 417 PIPs in one trading DAY! on a Monday! 00:04:20 - 00:05:31
Interpreted Prediction
Accurate risk management in Forex trading relies on thorough backtesting of all strategies. This involves testing a sufficient number of trades (speaker prefers 200), recording outcomes, and analyzing potential drawdowns and losing streaks to determine appropriate risk per trade, especially on a specific account size like $10,000.

Prediction Details

Topic
Forex Trading - Risk Management

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