%% MOST long funds trade/ inVest about 99% + have 1+/% cash; but looks like you are using leverage with those ETFs/99% maybe a bit steep. Actually i dont mind some 50-60% DD\they tend to be the best %% gainers. Exceptions include but not limited to inverse ETFs + EBIZ; or even when a top trender like IBUY starts underperforming by a bunch\kick it out , even if you are 99% sure it may finish well end of year///LOL,Congrats you made it thru bear markets also\good gains[Sorry DD tend$ to do worse than 60%/62%, SPXL went down 70% max dd\could easy go down more . For sure spxl/tqqq will in a multiyear bear\ most likely] {My comments are limited to first Fed tighten\nor would i want all my etfs dd 60-7o %%]
%% Easy on buy + hold a 3 x leveraged ETF; meaning easy to get that 86 % hit rate + 60% drawdown with TQQQ/spxl not easy to hold thru that/LOL. 88% is close to JAN indicator for year finishing uptrend. Worked well with splv, tqqq, qld,qqq; SPY /spxl failed it in 2020 unless spy dividends are counted/LOL[Past 3 years + more]
NQ at all time highs with big earnings season coming near an end. I highly doubt, we will not see correction around the corner.
%% IF you can believe his headline, he lets his profits run just a bit off nickels I did plan + pay up x20 .....for some 1901-1907 panic nickels/LOL; but they dont have Tom Jefferson on them , they have a ''v''.....
I would rather not risk drawdowns, but define a certain percentage of the deposit (for example, 3%), upon reaching which the trade is closed. And then I would run the strategy again with this restriction.
1) compute the max number of consecutive losses. E.g. 10. 2) simulate positions in your algorithm - don't open real but virtual positions. And start opening real positions only after N (e.g. 5) virtual positions in a row were losers. 3) you might want to increase the position size after each lost position. Perform grid search to find values which give you nice DD vs. profit.
%% ALMOST NEVER ''increase position size after each lost[loss ] ''; exceptions include a battle tested plan sometimes. I tend to lighten up more if something in my account even performs worse + profits anyway.......................................
I would say that depends on the asset you are trading. I always increase the position size. However I start with a very small one. And: my EAs are tested on several years of historical data with the analysis of events like nfps or covid. My worst trades come from manual "fun entries". :/ One of my newest EA following the strategy from above:
%% AS noted \ ''exceptions include a battle tested plan.'' IF only drawdowns were limited to the max in your or any backtest/LOL