Number of trades per week and drawdown limit strategies
I have got the feeling there's very few good opportunity to trade since the pandemic. For those who have been trading for at least a year. How many trade do you take on average per week? I am trying to define how much I can reasonably risk per trade.
I was also wondering what is the best thing to do when your account is approaching your drawdown limit. Let's say your drawdown limit is $4 000 and you have incured a $3 000 loss within 3-4 weeks. Would you lower your risk reward ratio to increase your win rate, or reduce your position size?
Every week is different, some weeks you might get 10 opportunities, other weeks there might not even be 1 opportunity.
Watch this video that Brad put up on Youtube about succeeding in the funded trader program it is a great video:
Whenever I go into a drawdown I start trading smaller and smaller (using the principle of the 4 consecutive loss rule). Generally my risk reward depends on the opportunity at hand
As soon as I have a losing trade I start to manage the capital. But each opportunity is different. You don't want to be watsing really good set ups on a small trade size and vice versa, you don't want to trade big on a crap set up.
You will learn to read the opportunity and give it a weighting and adjust your trade size accordingly. That way you can maximise good opportunities and reduce your risk on not so good set ups. Just banging away with the 4CLR is good but you can do it better.
Thanks for the insight Brad!