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A zero is less than 1% compounded daily so anyone making 1% per day is making a zero.
Why does one fail to make a zero?
1) drawdown
Just because you make 70% in a month that does not mean that you can make 1% per day.
2) lack of consistency
compound returns will walk past you and then fly into the sky like Superman.
Space is a tool, if you have a lot of tool but you don't build anything then what is the point?
There are three phases:
1) gathering your tools
2) building size prior to a large move
3) holding with size.
The worst phase to get stuck in is the "look at all of my pretty tools" phase.
There are many things that you can do with space; dividing a rectangle of so many lines into
3 rectangles of so many lines & trading different pairs and periods with each is one of the ways
in which space can be used.
EIGHTS uses line management because it is the fastest way to jump between pairs and periods.
Let's say that you are in love with a large chart but you cannot gather space because the small chart has flatlined.
Well all that you need to do is accumulate in a pair that is actually moving and then dump the money into the large
chart that is currently stalling; "well, duh!", you might say, but there are a lot of people who think that they have
to trade the H1 of a pair just because they want to ride the larger chart of the same pair.
A chart is just a vehicle, the numbers flowing in and out of your account is the only thing that matters.
jrtrading wrote:Let us say that I managed to reach a "0" at the end of the year by
accumulating 21.12% twelve times, but that I destroyed space many times in order to do so.
By doing the exact same trading actions (taking a profit at this price, a loss at that price), but using a wider space that was never destroyed fully, I think
this goal could have been reached earlier; it would be slower initially but faster eventually.
The reason is that the wider space compounds faster
than the account as a whole, if one thinks of space as a mini-account.
I used to think that I would definitely have blown that wider space too,
and lost more using this approach but thinking it through the trading actions would be the same
in both cases; it would simply be a matter of accounting.
Just some thoughts.