Best Way To Deal With A Large Drawdown

[rallymode]

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

With respect to the independent trader, I could argue that if you are not having big drawdowns you are doing it wrong. As long as you know what you are doing there is no reason not to use leverage, lots and lots of leverage. And that goes hand in hand with big drawdowns. That's the only way the independent trader will ever get close to being in the big league. Earning 20% with 5% peak-through will get you nowhere. Stay consistent and and keep your losses small is a pipe dream.

OP - if the drawdown is expected then keep trading as if nothing happened. Harder to do than it sounds but thats one of the things that separates the winners from the losers. If the drawdown is surprising to you then shutdown all trading until the reason is identified and your surprise has turned into confidence.

 

[Turveyd]

With respect to the independent trader, I could argue that if you are not having big drawdowns you are doing it wrong. As long as you know what you are doing there is no reason not to use leverage, lots and lots of leverage. And that goes hand in hand with big drawdowns. That's the only way the independent trader will ever get close to being in the big league. Earning 20% with 5% peak-through will get you nowhere. Stay consistent and and keep your losses small is a pipe dream.

OP - if the drawdown is expected then keep trading as if nothing happened. Harder to do than it sounds but thats one of the things that separates the winners from the losers. If the drawdown is surprising to you then shutdown all trading until the reason is identified and your surprise has turned into confidence.

Agreed of you trading profitably or expect to, go hard, more profit same work, total no brainer.

 

[i960]

Yeah who needs risk management and limits. It'll always "come back," right? Until it doesn't.

 

[Redneck]

Purposely laid back - as there things I wished to learn

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

With respect to the independent trader, I could argue that if you are not having big drawdowns you are doing it wrong.

I could argue many things – does not make any of them.., or me – right in doing so

As long as you know what you are doing there is no reason not to use leverage, lots and lots of leverage. And that goes hand in hand with big drawdowns. That's the only way the independent trader will ever get close to being in the big league. Earning 20% with 5% peak-through will get you nowhere. Stay consistent and and keep your losses small is a pipe dream.

Here is where your argument falls flat

A trader…, who knows what they are doing – better be pulling in more than 20% - a lot more

A trader – who knows what they are doing – knows there no need to be risking anywhere near what you are suggesting - to make the 20%+

Again – this mentality of risk big to make big – is a gamblers mindset - not a trader's


btw rallymode; I'm not suggesting you can't trade..., nor make good money from it - you have you way..., and I'm sure you a competent trader - perfect

Stay consistent and and keep your losses small is a pipe dream.

If one a piss poor trader (one's limitations - need not be another's)

OP - if the drawdown is expected then keep trading as if nothing happened. Harder to do than it sounds but thats one of the things that separates the winners from the losers. If the drawdown is surprising to you then shutdown all trading until the reason is identified and your surprise has turned into confidence.

If the OP expected the draw down – common sense - he never would have started this particular thread in the first place



Good Trading Today - Everyone -

RN

 

[Redneck]

Good Trading Today - Everyone -

RN

Forgot to add;

And keep each loss small for heaven sakes - no need to make trading any harder than it already is

Apparently some like digging out of a hole - me..., meeehhhh - not so much

RN

 

[rallymode]

I could argue many things – does not make any of them.., or me – right in doing so

It's not about being right. Do you like to just argue in circles? I was merely responding to you saying there's zero reason to have large drawdowns. So, I gave you a reason.

People, especially on this forum, will believe whatever suits them or their agenda but the truth of the matter is that unless you are trading the mid to high frequencies there's no way to get outsize returns without taking big risks aka large drawdowns. The only way for the independent guy to hit it big in this game, and i am talking 8-9 figures big, is to push the leverage as high as his emotional makeup would allow. You need to embrace leverage not fear it but you dont get much of that on ET, here it's all about small losses and grinding it out. It's not the late 90s anymore.

 

[Turveyd]

Leverage makes you poor faster if you can't trade, not a bad thing, saves time

Leverage gets you rich faster if you can trade.

Without Leverage I'd be talking 500+ years to get rich, with 2 - 3 years.


Trading is about RISK you have to accept it!

 

[Redneck]

It's not about being right. Do you like to just argue in circles? I was merely responding to you saying there's zero reason to have large drawdowns. So, I gave you a reason.

People, especially on this forum, will believe whatever suits them or their agenda but the truth of the matter is that unless you are trading the mid to high frequencies there's no way to get outsize returns without taking big risks aka large drawdowns. The only way for the independent guy to hit it big in this game, and i am talking 8-9 figures big, is to push the leverage as high as his emotional makeup would allow. You need to embrace leverage not fear it but you dont get much of that on ET, here it's all about small losses and grinding it out. It's not the late 90s anymore.

Yeah..., I suck

This all I could manage off a relatively low 6 figure account - today

I simply can't hang with you BSDs

Time to go cry in my beer

RN

 

[barcadia]

That's amazing, Redneck! You must teach me your ways

 

[Turveyd]

Yeah..., I suck

This all I could manage off a relatively low 6 figure account - today

I simply can't hang with you BSDs

Time to go cry in my beer

RN





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The old I'm right cause i make loads of money defence, more like have a copy of photoshop lol