If you do 1000 trades with a 50% success rate then the probablity of hitting a run of 10 losing trades in a row is damn close to 100%.
If my maths is right then it comes out at around 97.6%
Worth thinking about?
Of course if you continually take only 10% of your remaining capital then it becomes slightly different but still soul destroying, I would think.
What sort of win/loss ratio do Gannites quote? I know that some successfull TTs make profits on a less than 40% win rate. Putting 10% at risk on each trade for those guys would virtually gaurantee getting wiped out.
