there’s a tendency to feel a rush when the market is going your way and devastation when it’s going against you. These emotions do absolutely nothing to make you a good trader. It’s far better to keep the equity swings manageable and strive for a sense of balance each day, no matter what happens. That trade was the catalyst for my adopting a formula that limited both my profits and drawdowns by notching back the number of contracts traded in each market to a tolerable level. The key is that the number of contracts traded fluctuates in accordance with each market’s volatility.
