Best Way To Deal With A Large Drawdown

18% or total net worth, trading gave me my entire net worth, which is all cash.

 

I was 5x leveraged and was going for a 2-3% move in my favour on ASX200

 

I'm a M1 guy, check out the screen shot, took 1 trade today, switched on the pad, just at the right time, only +7 ( 2 pip spread at the time ), arrows are other setups I should of taken, but with kids and switched off already.

The first trade, X marks the exit!

 

Fixed, didn't wait long enough, my internets SLOW today!

PM'd you details of how i trade, do your own back testing, but 17 profits for 0 losers and counting.

SL Auto at -8, I tighten as it goes -5 as soon as it'll let me, that was a +7 some stall at +4 some run 20-30, don't like losers so first stall I just bail, that trade went another 6, but who knew!!

Currently DAX is uptrend so I'd be looking to take longs on pulls backs to the low envelope range.

Sadly WORK barely trading at the moment, switch ipad on, generally no trade there, but if there is 1 I take it and run.

LIFE

 

I think the OP needs to be realistic.

Markets have been tough this year. I took a loss on the same AD short you mention. It happens.

Two things I resort to in a drawdown. One, take profits quicker. Nothing breaks a losing spell better than a few quick profits. Two, if the drawdown is serious or if you feel you have lost your edge somehow, cut size drastically.

Drawdown are annoying but they are also feedback from the market. Either something has changed or you are screwing up.

 

%%%%%%%%%%%%%%%%%%%%%%%%%%%%

Good points;
dd of 18% seems shallow, unless you are trading SPY or QQQ. if you are in SPY, QQQ with 18% you are WAAY too leveraged NOW.

For sure ignore feelings that suggest ''make it back on one trade''[get rich quick ]You know that's all ways wrong.

 

anyway, good luck bro!

 

Ok that's rough, i would most probably decrease size for a while, but advice is cheap.

 

From my thread:

There is nothing stopping a trader on low budget trading in similar way unleveraged some liquid stock. That would be correct way of doing it to withstand sharp unexpected spikes, something a trader would really struggle with being leveraged to the hilt.

Let's face it what I am doing here is rather basic, the aim is to stay with market oscillations and not be chopped to an extent of a wipe out.

Also, as the purpose is to stay with market flow and not to be correct in one's analysis, from psychological point it is much easier to reverse position in comparison to the latter.

 

Use stops and don't have a large drawdown. Change the way you trade. There is but one correct method.