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>...
> we have now. Certainly you're not suggesting having the courage to go
> without a stop will be best, so I think I'm missing your point here.
>
> Sincerely-
> Ron Scott
I think the word you should have used was stupidity not courage :)
Dave is sort of right - test it for yourself if you don't believe this.
Almost every system will show lower profits with stops and profits will
decrease as stops are made tighter.
Now the other side of the coin is that tightening stops (to some minimum
point) reduces drawdown which means that the equity required to trade the
system decreases. This means that with a given account size you can trade
more contracts, which means that as you tighten stops you make more money.
Obviously there is an optimum stop level where you minimize drawdown and
maximize the winning percentage of trades.
Jeff.
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