RISK CONTROL - POSITION LIMITS

The biggest challenge any trader faces, whether they admit it or not, is position sizing. The #1 reason we blow our accounts, secondary to random trading, is increasing our position size after a loss to make up for the loss.

This control can very rarely be done with the human logic centers alone due to the frontal cortex being hijacked during a loss.

In addition to the DLL, a position limit on any trade would allow for proper rule following and reduced emotion during losses.