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TST Combine results and strategies for passing

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Pedro40 View Post
Good point, but not entirely true. If you want to reach the profit target, you have to use the max. contract size or close to it.

This is obviously dependent on the product being traded, the particular combine amount/parameters, and most importantly, the skill of the trader and his trading strategy, which you seem to not be factoring in at all, using only generalities, when in fact the specifics of the individual trader are what are most important here.


Pedro40 View Post
And there is no point in having a 30K account if the biggest allowed DD is only 1.5K. But anyway...

If you were to go work for a prop firm and they gave you $100K to trade with after you proved yourself in simulation, how much do you think they would let you lose of their money before you got cut off?


Pedro40 View Post
But more contracts you use, less wiggle room you have for a stop loss. Less contract you use, more time/trades it takes to reach the profit target. So it is a balancing act. It is alright to go big when the gods make the alignment perfect for a particular trade.

You are essentially citing the holy grail of trading in general--keeping your losers small, and your winners large. This has nothing to do with TST or anything really beyond what trading is all about. Going big when the gods are with you sounds great, except you don't know if the gods are with you when you take the trade, so "going big" is really another word for "gambling," which is why so many traders blow up, which is why TST and any firm with a brain will put limits on position size/drawdown/etc. There are more intelligent ways to get big on a winning trade from a risk perspective than "going big" and hoping the gods are with you on this one.

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