You can't have big gains like this without some risk of large drawdowns, unless you trade ultra high frequency (which let's face it almost no retail trader does profitably). Once you have a proven edge you can choose to reap it slowly and securely to earn a living (2% risk per trade max etc) or shoot for the stars and try to become the next market wizard (maybe 5-10% standard risk per trade + more due to correlations, forseen or unforseen). Naturally the first way is safer, but you will never make it really big being that conservative. That may be ok for you, it depends on the individual. Whichever of these a trader or fund wants to do is up to them- neither is the 'correct' way to do things. As long as they make sure their investors know the risks