Control your Maximum equity drawdown

Maximum equity drawdown is used to measure the maximum equity loss.

Bottom line is that this is just simple risk control planning to avoid equity loss. You can use your computer simulation to maximize profits and control risk on your trading system.

You can even combine these systems with with money management algorithms. Using proper money management will give your system an edge.

People trade with more money than they should. Taking on too much risk. So try and keep your investments to 10% of your TOTAL equity and never loose more than 2% of you total equity. This will give you some wiggle room if the stocks price declines. Once you are beyond that 2% range you need to get out right away.

Remember, Bulls make money, bears make money, pigs get slaughtered.