029: Alan Clement discusses Rotational trading, alternatives to stop losses, measuring system health, dynamic position sizing and anticipating trading signals.
Better System Trader
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How Do You Measure Drawdown?
Allan, let's move on to back testing a little bit actually. Firstl you mentioned before that you should look at risk ad, not so much an individual trade kind of level, but a systematic level. How do you measure that accurately? Ye, kit. Well, te this with a couple of things to see at front. The first thing to see is drawdown is not a single number. When we run it back to we get a single number for the maximum drawdine over attat period of time. But that's only because the trades fail in that particular order,. It's because, youno, the losses and the winds all added up to to produce that single
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