There's no doubt a direct relationship with your natural inborn refining mechanism and one's trading turnover.

It appears if you're protecting your equity curve, and have a a few losses in a row, and meanwhile have a nice profitable trade on that you're running, the only solution is too cut the profitable one as well. (since any adjustment in the market stops really need to be widened at this point when in the money, not tightened).

This, with Newton's Law, seems to make you pay double for your losses, since the profitable trade keeps running, but it's the only way it seems to keep the wolf from the door, by making a sacrifice to the market mistress, and hopefully by refining your selection criteria, so as too not achieve so many losses in a row that this proves problematic.

It also has to do with how successful you are after a profitable run, and wanting to protect, you find yourself also wanting to leverage and take advantage of the run. If this turns you can give back that hard fought gain, and need to cut that winner as well.

It's really the market's natural inbuilt refining mechanism. The costs of bad trades are not just whats upfront, but what comes from behind is really what's going to hold you back from premium performance.


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