Sometimes you need to go with a very small trading risk.
But from time to time trading a lot of positions at the same time will work.
So how do you decide what to do?
A big draw down is like a gap.
You can decide to jump and if you can make it to the other side, you are safe.
You can decide not to jump and stay safe on this side.
The only thing that I consider to be a really bad idea is to jump and try to turn around in the middle of the gap.
But actually this is what most people do.
They try to go all in and after the takeoff they want to turn around.
This is the best way to make sure that you will never reach the other side of the gap.
In this backtest you will see huge draw downs and depending on where you live, they might be too huge to keep your account alive.
I would never trade such a big risk setting on my real account, but it is interesting to see what is possible.
I have traded and backtested Algorithmic Trading Systems for over half a decade now and I am convinced that the people with the highest profits are acting very risky.
We love stories about heroes who survived risky situations.
We admire those heroes.
But I think we don’t want to face risky situations ourselves, because this makes us feel bad.
You can download the free version for the Algorithmic Trading System below the video on our website AlgorithmicTradingSystem.com
It will work with original Metatrader 5 demo accounts.
If you are interested to learn more, or if you are interested to trade this system on a real account, make sure to become a starter member for just one dollar.