ilmscore | Prediction Details
"you have to be risking a very small percentage of that account per trade and that has to be something you're comfortable with as well take the same trader for example or actually let's do a new example let's take a strategy that's about 60 percent accurate and based on the strategy has a series of five losses in a row so in that exact position with five losses in a row let's say that's the maximum drawdown as those five losses in a row for this specific strategy what if you were risking 5% of your total account value every single trade those five losses in a row would create a 25% drawdown now you have to ask yourself are you comfortable losing 25% of your total account or do you need to risk less a lot of times the number is thrown around that 2% of your total account value is the maximum amount you should ever risk on a trade"
By The Trading Channel (The Trading Channel) | December 4, 2018 | Pending
From video
The ONLY Risk Management Video YOU WILL EVER NEED... 00:09:25 - 00:10:15
Interpreted Prediction
Emphasizes that risking 5% per trade can lead to a 25% drawdown after five consecutive losses, suggesting that traders should consider risking less than 2% per trade, especially beginners, and be comfortable with the potential drawdown.

Prediction Details

Topic
Trading Risk Management

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