What you guys think of the following?
Let`s say you have a system(automated) that is good in itself with moderate drowdowns and has a positive expectancy on the long run. What if after let`s say one month you have a drowdown does it make sence to fund the account with double amount and trade it with double now risk in order to recover the drowdown faster? Notice at no point the risk was increased aditionally, we stil trade the same risk as persentage of the balance. Just that if one have temporaly funds available why not to use them for recovery... even if the drowdown period lasts for some time more it doesn`t mean there is aditional risk as we stil trade same strategy and same risk and it is well tested backward and forward.
I know someone may call it anchiety or even greed, but why not as long the risk is the same. And after that, after the recovery I would continoue trade with the initial and now with a bit bigger deposit.
I know you may say just trade with the max fund you have and don`t worry, yes it would work but the case is that the initial risk and fund suits me as it is and I just want to recover faster as I have the aditional fund available only for some time.It should be good for an account where you want a fast income from it every month/every second month and it would help to smooth the equity line.
It`s like you big brother running to help you when you are in trouble What are the pluses and minuses of it in your opinion?
Let`s say you have a system(automated) that is good in itself with moderate drowdowns and has a positive expectancy on the long run. What if after let`s say one month you have a drowdown does it make sence to fund the account with double amount and trade it with double now risk in order to recover the drowdown faster? Notice at no point the risk was increased aditionally, we stil trade the same risk as persentage of the balance. Just that if one have temporaly funds available why not to use them for recovery... even if the drowdown period lasts for some time more it doesn`t mean there is aditional risk as we stil trade same strategy and same risk and it is well tested backward and forward.
I know someone may call it anchiety or even greed, but why not as long the risk is the same. And after that, after the recovery I would continoue trade with the initial and now with a bit bigger deposit.
I know you may say just trade with the max fund you have and don`t worry, yes it would work but the case is that the initial risk and fund suits me as it is and I just want to recover faster as I have the aditional fund available only for some time.It should be good for an account where you want a fast income from it every month/every second month and it would help to smooth the equity line.
It`s like you big brother running to help you when you are in trouble What are the pluses and minuses of it in your opinion?