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<<Eight more months like this or better and California Here I Come! But
as always there may be pain in between unless I can keep improving the
mix.>>
John:
There will always be alternations of pain and ecstasy in trading.
Improving the mix of systems will not prevent the severe drawdowns
although may mute them a bit. But just when you feel you should be
adding systems to achieve your goals even faster is when you should be
putting on your seat belt for a rough ride. The most common
prescription for disaster is increasing exposure rather than reducing it
during the ecstasy phase. Everything may look like easy street now, but
when the typical 3 mo drawdown occurs, the pain will be magnified if you
are overexposed. If you reduce your exposure now, your life expectancy
in trading will be greatly magnified.
This is not a lecture, only the voice of one experienced in this cycle,
trying to help.
Take care,
Don
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