Episode 2 The Real Reason FX Maintenance Is Collapsing — The Moment Capital Management Falls Apart

When the retention rate is eroded, people change.

The thoughts that should be calm become

short-term in an instant.

They become unable to wait.

They become unable to extend.

They become unable to cut losses.

Many people say,

“Do it with surplus funds.”

“Lower the lot size.”

No.

The issue is not the amount.

The issue is that it has become a premise to continue in a “eroded state.”

A decrease in retention rate is something that

will inevitably happen in trading.

That in itself is not abnormal.

However, if you do not anticipate it,

it becomes an “emergency.”

When it becomes an emergency,

people do not make rational judgments.

They try to recover.

They try to extend.

They try to endure.

In that moment,

the design breaks.

The essence lies here.

It is not to protect the retention rate.

Even if the retention rate drops,

build a design that does not break the structure.

For example—

If you have a losing streak, lower the lot size.

No,

If you have a losing streak, you should stop.

Furthermore,

predefine the number of losing streaks.

This is the design.

Decide in advance how to act when eroded.

Because you have not decided,

you end up leaving it to the emotions of the moment.

Emotions are not the problem.

The problem is that a design does not exist.

Retention rate does not

steal your funds.

It erases your assumptions.

That is why it collapses.

What you must protect is not funds.

What you must protect is the structure.