ilmscore | Prediction Details
"so number six on the checklist is creating a risk management plan and since you've done all the other steps you now have the information you need to do so so if this strategy let's say performed at a 60 win rate and gave you a time when it had five losses in a row then if that's what happened in the past 100 instances the strategy performed or this strategy happened in historic data then it's likely that you're going to have five losses in a row again during the next 100 trades so the way you would go about creating a risk management plan is asking yourself with those five losses how much do i need to risk each trade to stay comfortable during drawdowns like that to stay out of my emotions to keep from making big mistakes and most of all to keep from blowing my account during those types of losses"
By The Trading Channel (The Trading Channel) | February 26, 2021 | Pending
From video
The Ultimate Swing Trading Guide For Beginners (ALL YOU NEED TO KNOW) 00:28:30 - 00:29:21
Interpreted Prediction
A risk management plan is essential and should be created based on backtested data, considering potential losing streaks. It helps determine how much to risk per trade to remain comfortable during drawdowns, avoid emotional mistakes, and prevent account blowouts.

Prediction Details

Topic
Trading Success Checklist - Risk Management

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