How Do You Handle Drawdown? · 5-Minute Futures

How Do You Handle Drawdown?

I’ve been thinking a lot about drawdowns and how everyone manages them. I’m running strictly algos now, and one of the biggest differences compared to when I traded manually is how much less tilt I experience. Following Kevin’s system has basically removed the emotional swings I used to put myself through.

For those of you who’ve made a similar transition, or even those still trading manually, how do you think about an acceptable drawdown? And when you are in a drawdown, what helps you manage it, both from a risk perspective and a mental one?

I am curious to hear how others define their thresholds and keep a clear head when things pull back.

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