LSJ Legend  Posts: 515 Joined: 8/17/2006 Location: Citrus Springs, FL  User Profile | Tom, That seems like a very plausible explanation. It was a small $40K 1x leveraged acct and maybe didn't have enough money. Back to the drawing board - thanks. Originally written by THELGET on 3/17/2018 8:19 PM Larry: Yes, that was the source of my confusion as well. I think the problem here is that the individual strategy is influenced by all that has gone on before it and after it. In isolation the strategy might perform just fine. But as a result of the Market State that preceded it more cash might be made available to it resulting in maybe more trades being taken than could not be "afforded" in the isolated state and some of those additional trades might lead to a catastrophic loss (that would have never occurred due to the lack of available capital to the isolated strategy). Remember that more available cash buys more trades and those additional trades have a lower Ranking Value and so might be considered less attractive. I hope maybe that makes some sense. Tom Helget | |
