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Alex,
this is a pure theory without application to reality.
You'll never KNOW that you'd make $20,000 this wk
because you based your expectations on your testing or
on the past and every next trade is independent of it and
it could be 40 losing trades as well (it sounds like not a very
good system).
You are talking about losing $100 each time which is, most
probably, your stop. With a stop like this there'd be not
much of a chance of making $20,000 because, again
most probably, your stop would've been hit before market
went your way.
Losing 20 times with stops adequate for surviving the paper
drawdown before the big trade comes is something for Ed
Seykota, but I wouldn't recommend it to anybody below the
wizard level.
I couldn't resist to put in my 2 c, but I hope this won't start a
lengthy discussion because the subject is almost exhausted.
Jan Philipp
. If I could trade 20 per week, losing $100 each time,
> and have confidence that each week I'll have one winning trade of
> $20,000, I couldn't care less about the losing streaks.
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