Walter Peters – Small Account Big Profit

Take a look at the equity curve chart below:

These trades are simulated for a 43% win rate strategy, with a 2:1 reward-to-risk ratio.

The risk per trade is 5%, which is crazy (of course, because every goo-roo trader harps on the “risk 2% per trade”)…

After 322 trades, this puny $1000 account hits $109,622 – which is great.

This is what happens when you trade an o.k. trading system with 5% risk per trade and compound the account.

But the chart below is even more impressive:

In this chart you see the exact same trades, exact same system, but instead of compounding at the account level, this is compounding at the trade level.

This lil ‘ol $1000 account ramps up to $900,000 in this simulation…. even though they are the same trades, the same sequence of winners and losers.

Everything is the same except for the risk management rules.

It’s fun to look at the hypothetical equity curves and salivate over the ferraris you can afford once your trading account hits that level….BUT

The reality is most traders give up before they hit the promised land…

Which is too bad.

If you don’t trade through the drawdowns, you’ll never hit the new equity highs.

Which is why trading psychology is a critical component of this course.

To grow an account quickly, you must deal with the losing streaks. These are the silent “trader killers.”

Most traders throw in the towel long before they hit the sweet, sweet equity highs.

This is different to what you’ve seen before, because there’s no magic system (in fact, you can do this with dozens of different trading systems).

No “holy grail” or the secret harmonics W.D. Gann passed down to his great-grandkids… instead you’ll get what matters.