Thank you Mr. M.

Yes, I've contemplated quite a bit about reducing my position sizes and risk level. However, one of my assumptions is that my edge will not always be working, so I should make as much as possible while I can.

But you are right, that crazy move in my equity curve last week was frightening. It was the first time I've traded after I doubled my initial deposit into the account. I was not used to seeing twice the $$$ movement on the same pip movement as before. It caused some mental issues.

My system is based on staying in on the HOME RUN (trend) trades. These trades do not come very often. Most of the time, it is small wins or losses. But when you actually get in on one of those monster trend trades, it is very difficult mentally to stay in because you want to bank the money as soon as possible. As the profit starts to shrink, there is an urge to close it out and take whatever you can get. I call that the Piker in me. If I had just stuck to my system and held on for dear life, my equity would be over $40K right now.

With my current account and risk level, a HOME RUN trade is $10K. I've really only had 1 HOME RUN trade so far, and that happened last week (+$8K) and was what brought my equity curve back up.

I'm trying to diversify, but it's hard to develop a working strategy and test it long enough to have confidence to trade it.

Good Times

BTW, if you really want to pursue your 3 line projection method, you will need to develop a mathematical model. The eyes can deceive you, numbers are much better to make judgement on.

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Life is a Gamble. You win some. You lose some. And life goes on.