Daily max loss

NexusFi · 2019-11-07T13:37:32-05:00

If your strategy needs a max daily loss then develop a new strategy. My max loss over the past year was most certainly larger than my average winner (by over $300). My largest loss over the past year was $745 per contract. My average loss was $260. Now if I decided I didn't want to risk $745 again and implemented a max loss of say $400 ($140 over my average loss, $35 less than my average winner) my other stats would significantly change as well. R/R ,winning %, max win (potentially), average win, average …

Discussion in Traders Hideout

Updated November 7, 2019

Daily max loss

November 7th, 2019, 01:37 PM

#11 (permalink)

Massive l

OR/USA

Legendary /NQ Trader

Experience: None

Posts: 2,129 since Mar 2011

Thanks Given: 1,859

Thanks Received: 5,106

Crude Man

Your max loss should always be smaller than your average winner.

Aim for 2.5:1 on all your trades i.e. for every Euro you lose on a trade, make sure you make 2.5 Euros on a winning trade.

risk/reward means more than max loss/average winner.

e.g.

62% win
435 avg win
225 avg loser
1.92 R/R
max loser 745
max winner 1100
expectancy $185 per contract