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We have already seen the first results and the task now is to find out what we can do to make our system 100 percent safe. And the easiest way to test that is simply to take a much too small account. I’ll take a deposit of €10 here, start my test and within a second the test is finished. We can now see in the backtest that we have used €10 and lost it immediately. It went down almost immediately. Let’s change the deposit and go up to €50 and start our test. Then we should now see in the process that our account is initially developing quite well. We are now at €62, and are now exceeding €70. Now we are at 85, 90, 95. So that’s clearly not going any longer.

 

Now we’ve passed 100, but that’s as far as it goes. We got to €129 and then our account crashed. Again, it lasted much longer, but in the end it was over. Let’s just go to the other extreme and say we have €100,000 available. And if I start the test here now, I’ll see if I can make it a little more visible, then we can simultaneously observe the development here above and the equity and balance curve here below. That looks much less threatening. I’ll let this run through to the end of the test period. That was it so far. We have a positive result. Here is the drawdown. But at no time was our entire account at risk. The disadvantage, of course, is that the profit in relation is not that high either, so it doesn’t matter.

 

But what we have learned is that with a €10 account, we can be pretty sure that we will ruin it within a very short time. And that was the first task. So, if the account is too small, there is usually a very high risk that we will reduce the account balance to zero quite quickly.