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Draw Down of Trading Strategy

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Old 12th November 2015, 02:32 PM
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Default Draw Down of Trading Strategy

Hello Friends,

As I am Practising one trading strategy from last 3 months in Crude Oil Trading. In this Strategy I am facing 20 % Draw down in my Account with continuous 8 failed trades. Later My strategy giving positive results and giving around 10 % returns per month.

Seniors please advise that Can I proceed with above draw down or better to reduce the Position Size? Is 20 % Draw down is Normal or it is a bit higher?


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Old 12th November 2015, 07:00 PM
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Default Re: Draw Down of Trading Strategy

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Originally Posted by Scalper View Post
Hello Friends,
As I am Practising one trading strategy from last 3 months in Crude Oil Trading.
3 months data is not sufficient to backtest a strategy. Atleast you need 3-5 yrs datas. More is better.

Quote:
Is 20 % Draw down is Normal or it is a bit higher?
Yes it is very higher for one loss streak.
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Old 12th November 2015, 07:22 PM
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Default Re: Draw Down of Trading Strategy

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Originally Posted by vijayanscbe View Post
3 months data is not sufficient to backtest a strategy. Atleast you need 3-5 yrs datas. More is better.



Yes it is very higher for one loss streak.

Thank You Sir

I did not have 3 to 5 years data. I did live trading for last 3 months as a begining I am trading very small amount on this strategy.

I will increase my account size slowly. How much You will recommend the Drawdown Limit. Can I reduce my position size to half which may limit Drawdown to 10 %.

Your Valuable reply is appreciated Sir.
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Old 12th November 2015, 08:02 PM
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Default Re: Draw Down of Trading Strategy

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Originally Posted by Scalper View Post
Thank You Sir

I did not have 3 to 5 years data. I did live trading for last 3 months as a begining I am trading very small amount on this strategy.

I will increase my account size slowly. How much You will recommend the Drawdown Limit. Can I reduce my position size to half which may limit Drawdown to 10 %.

Your Valuable reply is appreciated Sir.
If your live trading experience 3months only means , You have to face many steep learning curves. Its takes atleast 2-3yrs to be a consistent trader. So trade very very light mode (1 lot crudemini) and learn.
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Old 12th November 2015, 08:56 PM
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Default Re: Draw Down of Trading Strategy

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Originally Posted by vijayanscbe View Post
If your live trading experience 3months only means , You have to face many steep learning curves. Its takes atleast 2-3yrs to be a consistent trader. So trade very very light mode (1 lot crudemini) and learn.
Thank You Sir.

I am also in the same plan sir. In 2 Years I want to be a full time Trader.

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