28th July 2009, 12:30 AM
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Member
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Join Date: Jan 1970
Posts: 4,426
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I agree, it depends on your strike rate.
1% or 2% and divide that by the rated price.
Now that's very small, but it will build confidence and you won't be sweating losses.
I have a method that has a 40% strike rate and 15% POT, so I use 5% of bank not reducing, but that's purely because of such a high strike rate.
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