Isn't it the purpose of trading futures to be leveraged? 20% in oil futures is a lot. 15 dollars in CL is 1500 x $10=$15,000 per contract. Depending on the number of contracts, his loss can be any number.
Futures have many uses besides jacking up leverage. If 20% is enough to crush someone, they're in "I'm AIG, bail me out!" territory. If it's bad for institutions to be that stretched, how can it be healthy or sensible for anyone else? It takes all kinds to make a market, each to their own...
I have two actual trading systems, one automated and one based on signals, both of those are well understood and are doing well. Unfortunately, they are simply funding my discretionary trading losses. I should probably just stop trading discretionary. The thing is I believe if I can master some of the psychological aspects the discretionary approach will be superior to the systemic ones. We will see....I may just revert to only trading systems based on autogenerated signals.
Sorry, to be clear, when I said "kill" me, Ive taken about an 8% portfolio loss. For me, in such a short period of time, that kills me. However, it's not so bad that I won't live to fight another day. Still, probably a bit too much leverage with the CL. However, it is bad luck that I've hooked into this beast in the midst of a $13 run over two weeks. Kind of ridiculous if you ask me.
I've heard this same thing from several others. My husband and I are developing an ATS based on my trading strategies but with none of my foibles programmed in such as analyzing a setup while it moves heavily in my favor without me, moving stops too soon and cutting off 3/4 of the profit in the expected move, jumping the gun just in case price doesn't reach the point at which the trade is truly set up to play, and so on.
You should strive to cut down your position size after a sizable loss until composure is regained. Although, I do not trade the size you do, this has helped me, because you are in a very vulnerable position emotionally. It will aggravate you to make it back slowly, but at least you won't deplete capital further, and that is your real adversary.............capital depletion.