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Originally Posted by hhsmoney
That was my concern when I ran a backtest. I feared that somewhere along the line there will be atleast one margin call, and one is all you need to wreck havoc.
Pipsweak, I understand you're talking about the straight v1+v2mini. Do you think there may be some merit to mikejody's closing all trades every 5% gain idea?
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Actually, my concern is the same no matter what type of variation or where you take profits. Even if were to take your money out after you make 5%, you would still run into problems.
Example:
You start with $10k. You have withdrawn 5% 10 times in a row, so now have $5k in profits. Now the EA blows out and you lose 90% of the account or $9k, so you now have $6k. In order to gain an edge, you need to be able to get at least a 5% increase in equity more than 20 times in a row before blowing the account out. I think it's very unlikley in the long run.