What's your strategy for drawdown recovery?

FTC Community TeamStaff97 views

Recovering a drawdown by trading harder is how accounts die; recovering by trading smaller and slower is how they survive. The recovery plan should exist before the drawdown does.

What's your strategy for drawdown recovery? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

What's yours?

  • how you trade during the drawdown
  • the size and rule changes you make
  • how you know recovery is working
What's your strategy for drawdown recovery? — moving average crossover diagram
A fast moving average crossing a slower one

The drawdown guide explains why slower recovery is faster in the end.

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