I have the following questions:
1. What kind of risk control you apply in periods of drawdown as you mention above?
2. Do you pyramid your positions in the direction of the trend?
Thanks, glad you have learned from the thread.
1. I trade less size and less frequently during periods of drawdown. Assume you trade in such a way that if you are wrong, you will lose 1% of your account balance per trade. As your account balance shrinks during drawdown, you will trade less in order to continue only losing 1% of your account balance.
2. I do not pyramid (in or out).