Many "grownup" firms would force you to cut positions once you are down 4-5% from HWM. However, this does not mean that you can't just scale your strategy down to keep the draw-downs to the required minimum.Quote from njrookie1:at a calmars ratio of 50, sellingindexvol66 can make back the 11% DD in a week or two. note the YTD return is already approaching 100%.
Quote from sle:
Many "grownup" firms would force you to cut positions once you are down 4-5% from HWM. However, this does not mean that you can't just scale your strategy down to keep the draw-downs to the required minimum.