Qx RSI Scalper – Equity Protection

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Those of you who are using the prior versions of the Qx Auto Traders
should be familiar with the Equity Protection feature by now and how
to use it. As a review, this feature protects your account from
catastrophic loss. The general guideline is to set your Protected
Equity balance to around 80% of your initial account balance and to
adjust this feature upwards weekly against improvements in your
account balance. If you have this feature set to true, you cannot lose
any more than 20% of your account balance no matter what.

A side effect of this feature is that most Qx Experts are designed
never to execute a strategy that will take drawdowns below this amount
either. In the case of the Qx RSI scalper I believe that it is not
beneficial to hold positions through deep draw downs to a winning
trade for a number of reasons. Firstly, during the 1 or 2 days it may
take for the price to return to the initial order placement price you
will usually sacrifice several profitable trading situations. Taking a
single loss against 3 or more profitable trades is far more profitable
than holding a position for a small win or loss.