059: Reducing Drawdowns with Scott Phillips
Better System Trader
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How to Reduce Drawdown in a Trading System?
If you want to avoid drawdown, stop trading. I try and be a bit kinder to myself when i'm in drawdown. The first fix is to bank partial profits along the way at a point that doesn't sacrifice your title return too much but reduces the standard deviation of your winners. A sign of weakness exi so let's say your average win was one point o. And your average losing trade is one rippage on a winning train. That would be almost an untradable marginal system. But what you can do is identify the types of price action that make it not such a good trade withinfirst couple of days. So often you get an entry on a trade
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