Can someone look over my thinking here, assuming the following:
I have $10,000 trading funds.
I will use a 2% position size (net), approx. 2.5% (gross) allowing for slippage and transaction costs.
I will limit open positions to 3 at a time and have a maximum draw-down of, say, $4,000.
I will be disciplined with stops.
I reckon if I hit a loss of $2,000 (net) i.e. 10 positions gone wrong, then I must not be cut out for this game.
Is that a fair assumption? Put another way, how do you know when to throw in the towel?