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. Turveyd

    Turveyd


    He is, if he is getting whipsawed a lot then he might be better off without ( not a recomendation ohhh no ), falling win rate and not letting profits run to cover are his main issues.
     
    #61     May 12, 2015
  2. Redneck

    Redneck

    OP


    Not picking on Ya…, nor any disrespect intended

    But in consideration of new / aspiring traders – I think there good lessons to be gleaned

    ============

    Gamblers / traders mindsets are worlds apart

    Below are examples of a gamblers mindset


    ===============


    Asides

    Most of the replies to the OP in this thread – are frankly..., sickening

    If you’re an actual trader – you suck

    It you’re a pretender – you should be ashamed of yourself for offering up such bullshit

    This guy is struggling…, and on the brink of failure

    But then I suspect most of you have never stared failure dead square in the eyes

    Too bad - for it offers up the opportunity to see exactly what you're made of / who you truly are

    =======================

    2nd aside;

    This is exactly why I find the mind…, the mkt…, trading..., and to a much lessor extent..., people - so fascinating

    First 3 offer up the total freedom to slice one’s neck from ear to ear..., as deeply as they desire


    Meanwhile many watch..., finding some sort of enjoyment / entertainment / holier than thou -watching as one goes through it

    I do not

    RN
     
    #62     May 13, 2015
    nursebee likes this.
  3. romik

    romik

    Probably all traders have gone through this. No matter what advice is given, outcome is a personal matter. Big funds go through large drawdown stages.
     
    #63     May 13, 2015
  4. Fundlord

    Fundlord

    The Livermore reference was a joke, I am not a gambler by nature.

    I will never run in traffic to pick up pennies, I always look for asymmetrical opportunities.

    By real trader I assume you mean someone who makes a living from trading then yes I am a real trader.

    UPDATE: I erased half of the drawdown back at 16%, a string of winners has upped my confidence and I've got my confidence back in pulling the trigger when the time is right.
     
    #64     May 13, 2015
  5. Turveyd

    Turveyd

    Sounding better, its a constant battle but part of the fun.
     
    #65     May 13, 2015
  6. Fundlord

    Fundlord

    Yup, its a good humbling experience helps you really get back on your A game.
     
    #66     May 13, 2015
  7. you sound like you're pretty much overleveraged?
    if you have 28% DD and make make back half of that within some days, IMO your position size is way too high. then you also can't complain about high DD. slow down.
     
    #67     May 13, 2015
    romik likes this.
  8. Redneck

    Redneck

    First.., one need separate the independent mechanical traders from the "big funds"

    Completely different dynamics


    With regard to the independent mechanical trader

    There is absolutely no need..., no sense..., no reason - to ever experience a large draw down - none..., nada..., zip


    RN
     
    #68     May 13, 2015
  9. Redneck

    Redneck

    Gambler mentality - no matter how it sliced / diced up

    RN
     
    #69     May 13, 2015
  10. Turveyd

    Turveyd

    Got to disagree, he's just had a bad run, we get them.

    We don't know his account value, 28% or whatever down from high, might not be many $$$'s, he could be in the small account huge growth game, which requires higher risk or whats the point.

    I've lost 30% in a single trade, as said BAD days happen.

    No matter how good you are, your going to always sooner or later run into a batch of losers, I have a 80%+ win rate and still get weeks where I can't make a profit to save my own butt literally.

    Less judgey, more helpy!! IMHO!!
     
    #70     May 13, 2015
    Fundlord likes this.