Bankroll Two Questions

Patrik Mellqvist

I have a question as I will run one complete portfolio with Set & Forget methods with Fair'Bot.

I will validate the method with three months minimum before deciding whether to continue and whether to remove - based upon the passed stats comparing to my own stats performance.

I read your article and LOVE THIS SOLUTION -
If you have 1000£ and state 10£ and get a bad swing.
The Black Swan or just bad method.
You half your stake when reaching half the bankroll.
500£ Stake 5£

This is a key factor to overcome a bad year or a couple of bad months - EVEN IF THE METHOD IS A LONG TERM WINNING -

I see it as the key factor to overcome the worst scenario with the right way to handle and manage your bankroll.

Question 1
Do you agree with my statement above.

Question 2
When it comes to compounding in relation to half bankroll if a big drawdown - would you say that set a new stake a new high every quarter - if winning - and if losing - just let the variance play out - either you swing to right direction before hitting 50% and all good and continue as usually.
And if not half the stake and start over with new balance.

Martin

@Patrik-Mellqvist yes I agree as I wrote it, it is all about bankroll protection and it is a great way to keep yourself in the game even if you picked a bad strategy to run.

I think quarterly is a good time to do it but you could do it monthly it's really down to what suits the trader.