How do you handle drawdowns?

Non-specific Quantitative Finance related chatter.
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guy_incognito
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Joined: Thu Jan 01, 2004 12:00 am

How do you handle drawdowns?

Post by guy_incognito »

Does anyone stick to their strategy through drawdowns, but still irrationally feels one day away from the end of your strategy? How do you mitigate the paranoia?



asking for a friend.
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nikol
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Joined: Thu Jan 01, 2004 12:00 am

How do you handle drawdowns?

Post by nikol »

I am not in big trading game, but have a skin in other game.



Loss of confidence is a problem by itself. Try to gain and balance it somewhere else (if you have other talents).



In the end you have to understand why your strategy makes money and to check if your ideal circumstances have changed and have an idea if and when your ideal state of the market will come back.



It is like in those episodes from that "Big short" movie by Christian Bale. He knew the market will go his way, but did not know when.
AngelaKinsey52
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Joined: Thu Jan 01, 2004 12:00 am

How do you handle drawdowns?

Post by AngelaKinsey52 »

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