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> Am I reading this table correctly that there is a 99.99% chance of a 42%
> percent account drawdown and an 80% chance of a 59% drawdown?
No, that's not what it says. It says there is a 99.99% chance of a
$15,810 drawdown and an 80% chance of a $28,025 drawdown. It doesn't say
anything about how big your account is. That's the whole point of the
exercise - determining how big an account you need to trade this thing
and still sleep at night.
The right hand column is just the minimum margin (needed to keep
trading) added to the drawdown. Looking at that one, if you try to trade
a big SP with a $50K account, there is a 70% chance you will get a
margin call sometime. If you have a $100K account, there is only a 0.1%
chance you will get a margin call.
--
Dennis
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