Best Way To Deal With A Large Drawdown

Discussion in 'Risk Management' started by Fundlord, May 9, 2015.

Best Way To Deal With Drawdowns

  1. Step back from trading, re-evaluate and change strategy

    30.6%
  2. Continue strategy but reduce size

    51.0%
  3. Take a break from trading all together for a while

    12.2%
  4. Try win it all back on one or two well timed trades

    6.1%
  1. loyek590

    loyek590

    if it is a viable system, it will already have predicted that something you didn't expect will occur
     
    #111     May 17, 2015
  2. And how do you actually see it now in the depths of drawdown?
     
    #112     May 17, 2015
  3. loyek590

    loyek590

    everything is bad. Even your own mother never loved you, you have no friends, and even strangers are starting to hate you
     
    #113     May 17, 2015
  4. Sorry to break the news to you : the harassment is now finished, as all is now in the hands
    of the Police. Yes they do extraditions. :):):).
    I hope you will be courageous to give your name and address when
    time comes instead of wasting Police time to bring you to a Court of
    Law to explain your role in the actual deaths they are investigating
    - collateral damages some will call it. Murder for some lawyers.
    But please start telling all to your lawyer so that they get ready.

    Hope you won't run away from French Justice System, as when
    people taste our prisons here ( including Ministers and bankers),
    they prefer to run away or stick to the Law
     
    #114     May 17, 2015
    loyek590 likes this.
  5. loyek590

    loyek590

    now? how do I see it after all these unexpected drawdowns? "Oh Shit!" "not this again?" "Oh well, we've been through it before, we'll make it through again" "If we don't live too long"
     
    #115     May 17, 2015
  6. Redneck

    Redneck

    This another pitfall of trading

    And I don't care it it referring to losses..., losers..., winnings..., winners..., consistency..., repetition..., or whatever


    The only way to know one can survive a situation - is be in that situation..., and survive it

    And typically (way..., way more times than not) - with respect to trading - we are placed in those situations precisely when we are least prepared to survive it


    Until enough experience built up - nearly every situation is an absolute do (survive / make it through) or die (break our account/ we're done) proposition



    Gotta love this game

    Also gotta respect the risk involved


    RN
     
    #116     May 17, 2015
  7. Redneck

    Redneck

    Or at least anticipated

    Yet until we've experienced it - how the heck do we know to anticipate it


    Only way I know of is to learn from other's (including mine) mistakes

    But people are funny that way - seems we need to experience it - before we're willing to believe it actually exists / is out there to bite us in the ass


    Landmines buried all around me - yet I continue dancing a moonlight serenade

    Go figure

    RN
     
    #117     May 17, 2015
  8. Mistakes are made. People are human.
    Some learn early.
    Others only learn when faced with serious consequences.
    That is what makes life: every person is different, every person learns in different ways.
     
    #118     May 17, 2015
  9. loyek590

    loyek590

    the risk becomes less and less over time if just like my daddy told me, "Put it away for a rainy day." So when I started out, my trading account (all $350 of it) was 100% of my liquid net worth. And it stayed that way until I blew up.

    Second time around a percentage of trading profits went into something boring like the Vanguard S&P 500 fund each quarter (or whenever I had to wait for them) so trading today is much less risky than it was when I was young.
     
    #119     May 17, 2015
  10. loyek590

    loyek590

    Sounds like the Sunday Afternoon Losers Club. We all know how it feels to be in a drawdown and are probably actually in one.

    Someday somebody needs to start a thread, "How do you deal with unexpected very high profits?"
     
    #120     May 17, 2015
    TooOldForThis likes this.