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So in that vein:


(a) You are a swing trader. You trade a mechanical system, or a discretionary system or even a hybrid of the two.


(b) You enter a new long position on day 1, or possibly open a new 'portfolio' of long positions.


(c) On day 2 that position or portfolio gaps 15% lower and is trading lower fast.


Statistical analysis of this scenario would tell you that the probabilities of this happening are remote to impossible, particularly if you have used some form of (a) backtesting and (b) particularly in the portfolio scenario.


What would, or should, the 'average' individual trader, trading his own money do in this circumstance?


jog on

duc


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