This article on Trailing Maximum Drawdown is the opinion of Optimus Futures.

Preface: Before we get started, note that we use the term “retail trader” in contradistinction to “professional trader.” By the term “retail trader,” we’re not referring to a job-related designation but rather a mentality and level of knowledge and skill. As a retail trader, you aspire to go beyond the performance typical of the retail crowd. When you trade the markets, you’re also trading against retail and professional traders, the latter holding significant levels of capital.

There’s a fashionable trend among retail traders surrounding a risk management tool called Trailing Maximum Drawdown. It’s essentially a glorified loss limit tool.

Your

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