What is the largest draw down I can expect?
The answer to that question is two-fold. One, while we have exhausted every resource to design these systems to function safely and analyze any number of market contingencies, they are still market driven. Secondly, by us exiting the market most every week, we will sometimes leave money on the table. It is always a delicate balance between risk and reward. Being cautious and being greedy. But if I were to state a figure, I’d use 30% because it’s hard to determine what could happen in the future. We do plan to trade a basket of currencies most of the time which should keep any drawdown to a minimum. I’d like to say we will never see a monthly drawdown, but I can’t. We will see intraday drawdowns and possibly even a weekly drawdown at some point. But we have put in place safeguards to avoid any large monthly drawdowns and trust they are sufficient. Note: All of our systems test out with moderate drawdowns, but we do not know what the future holds and is the reason we use balanced stops o
