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Speculators are like
snowflakes in that no two are alike. Tolerance for risk and draw downs
varies from one trader to another. If you are interested in
keeping
draw downs low, the amount risked per trade in Intensity can be reduced while keeping
returns high. The graphs below show the yearly back tested
returns and draw downs with conservative money management
applied, resulting in a compounded annual growth rate equal to 36.4% and
a maximum draw down below 20%. In 19 of the 23 years in the test the
annual maximum drawdown was below 15%.


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