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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (12327)	1/10/1999 10:05:00 PM
From: Tom Trader	Read Replies (2) \| Respond to of 44573

Chip, I see the logic of what you've posted but should the $win/loss ratio not matter?? In other words, does it make any difference whether a system makes $4 for every $1 lost vs $3 to $1?? Second, how does one factor in the worst draw-down that Ihave experienced based on the past 10 years experience. For example say that the worst draw-down that I had was $4000 loss per contract on two successive trades, the impact on my capital would be severe if I traded that many contracts per the formula that you outlined.