Traders Scaling Up

📊 Investing
1

Hello you wonderful and amazing people that make up these forums. I sincerely hope your day is going well.

I kindly wondered i know the rule is for traders to limit their trades to a maximum of 2% of their account balance. However it got me wondering how many traders become very successful such as millionaires. Do they go against this and once a strategy is working start risking higher amounts please? Further do they use automation to scale things up and hire staff to help them conduct trades please? As for instance if i have an account balance of $10,000 i will only really be risking about $200 per trade so will take a long time to scale things up. If anyone kindly had any thoughts on this i would be forever grateful and very thankful.

Sending you lots of good wishes and i wish you lots of good luck on your trading and investing journey. All the best.

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Similar things are talked about in Betfair bots and betting strategies.

The 2% risk rule is exactly that. If your strategy is good then long term the bad variance should average out to +EV.

There is also how many trades do you plan to place in a week, and secondly is there scalability in your strategy?

If you can make say 2% consistently a month - ok that doesn’t sound great at first but that is 26.7% return in a year or 976% in 10 years.

Would you not be happy with a near 10x return in 10 years?

Time is another factor as well, same as greed. I once had a Betfair bot that I could reasonably scalp £10-£20 a day but it wasn’t scalable more than that due to liquidity issues. Still was better than nothing. If I tried to scale my risk/losses came greater. Stock markets not so dissimilar if you know how to read it.

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