Mode 1 does not like taking balance losses. It does sustain periods of floating drawdown, however, the amount of open drawdown is strictly limited, which prevents open positions from getting out of hand and causing a margin call. The trading frequency is not very high, but this system is quite stable and spread resistant.
Mode 2 is an active trader and places trades daily. It is spread-dependent (usually 3 pips or less is ideal) and does require some common sense to avoid trading days that are unusually volatile (not a good idea to run this strategy during a Brexit vote). Overall, this system takes losses when needed and it offers a more aggressive approach to the markets.
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