Losing Streak

Discussion in 'Trading' started by RogueTrader92, May 23, 2021.

  1. Blaze

    Blaze

    Reduce your risk per trade by half and then continue trading until you are out of the drawdown. You need to have determined beforehand what to do at specific levels of drawdowns based on back-testing, not guesswork. You must have enough data about your system/strategy to know what drawdown is normal and which one is unusual. For example, I personally would reduce the risk per trade by 2/3 if I hit a 10% drawdown (because based on backtesting, a 10% drawdown is unlikely but possible). I would then trade at 1/3 the normal risk until I get out of the drawdown. If instead of recovering, I draw down further to 15%, I would re-examine the strategy and check for errors. At 20% DD I would go back to the drawing board and possibly abandon the strategy.

    You must have enough information about your strategy or system (based on backtesting) to determine whether a drawdown is "normal" or not.
     
    #31     Jun 12, 2021
    comagnum likes this.
  2. Tirion

    Tirion

    #32     Jun 25, 2021
  3. GotherL

    GotherL

    Ask yourself first - whether your an profitable trader on a losing streak or on a losing streak simply cause your not an profitable trader.
     
    Last edited: Jun 27, 2021
    #33     Jun 27, 2021
  4. Everyone is actually giving u bad advice. The truth is when you are digging yourself into a hole, stop digging.
     
    #34     Jun 28, 2021
  5. itsArtie

    itsArtie

    Size down. The market is constantly changing, from what I can tell, usually every 4-8 weeks. So you gotta figure out how the current trend works with your strategy and what are the mistakes you are making.
     
    #35     Jun 28, 2021