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How to Trade Consistently
If you trade sizing consistently based on dollar amounts, if your account takes a deep drawdown, you will inadvertently be sizing up the trade as a proportion of your account. If I have $100 and I lose 20%, I'm down to 80, right? That $20 is now representative of 25% of my remaining $80 and thus the 25% required to get back to even. So that's an example where if you lose a percent, it takes more than that same percent to get back into even. And this gets exacerbated essentially if you take a large drawdown, right? The same $1 trade is 1.4%. You can't bet with a small $1 with a