There’s a whole “drawdown tolerance” gap between trading competitions and live trading.
Competitions only look at the equity curve. In live trading, you also have to ask whether you could sleep the night you were down 30%.
So when I assess a trader, I don’t care how much they say they made. I care whether they can clearly explain which trade hurt the most and why they didn’t cut their losses.
People who can recount the pain have usually been through it for real.
Competitions only look at the equity curve. In live trading, you also have to ask whether you could sleep the night you were down 30%.
So when I assess a trader, I don’t care how much they say they made. I care whether they can clearly explain which trade hurt the most and why they didn’t cut their losses.
People who can recount the pain have usually been through it for real.