Sunnyvale, CA
Posts: 171 since Dec 2012
Thanks Given: 8
Thanks Received: 107
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A quote from Murray Ruggiero, appropriate for this thread:
"[One thing discretionary traders sometimes say] is they trade that way because it makes their drawdowns less than with mechanical systems. All that means is they haven't traded long enough. Going to the casino once and saying "My method for playing blackjack is good because I was never down more than $500" wouldn't hold up if they went back to the casino one thousand times. If they were the best blackjack player in the world, they would figure out that they're going to blow out, say, 250 betting units. ... you always have less data on your discretionary trading that makes your drawdown number more suspect. It just means your disaster hasn't occurred yet."
p233, Market Beaters, Art Collins.
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