Simple mathematical calculations 👇
You only need to achieve an average monthly return of 6% to get an annual return of 100%; if your average monthly return reaches 10%, then your annual return is 210%。
The result of the above calculation can only be considered a bonus; the next calculation is the key point:
When you lose 33% of your account, you need a 50% increase to return to break-even; when you lose 50% of your account, you need a 100% increase to return to break-even.
From these calculations, it is easy to draw this conclusion:Strict control of the account's downside% is the wealth password that allows the account to achieve excellent long-term performance.
Look ahead, look a little further, and remember this wealth password like you remember your own phone number. At that time, all corresponding actions will seem to go with the flow 🚴🏻
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MattSully : Managing drawdowns is key eh