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Group:
I am posting the following information from one of those expensive
seminars I attended several years ago. FWIW........
1. Chart your equity on a weekly basis.
2. Make two charts of your equity curve: a 3 week moving average
offset (displaced) by 3 weeks and 7 week moving average offset
(displaced) by 5 weeks.
3. If your trading equity falls below the (3 x 3); reduce your lot size
to a minimum.
4. If your trading equity falls below the (7 x 5) stop trading; and leave
town for at least one week AND until you correct the problem.
5. Upon your return; paper trade until your equity curve moves above the (7
x 5) moving average. Commence real trading but on a small scale.
6. When your equity curve moves above the (3 x 3) moving average;
revert to trading normal size.
7. The purpose of these rules and this exercise is to avert drawdowns by
paper trading away the bad times.
==================================================
Chas
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