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Why don't you tell us the answer...what helps peak to valley draw downs? Is it only exits, the part where the trend bends?? Giving back something at the end of a trend is the inevitable part of a trend following system, but I don't think this is the only factor that contributes to the depth of a peak to valley drawdown.The next market phase could be non-trending and volatile. False breakout territory. How do you prevent your system from digging itself further into the valley 1R at a time. Moving the stoploss to prevent entire 1R losses every time your system gets suckered by a false breakout might be one way (the beauty is I get to test it). Keeping your system out of an unfavourable market with a filter of some kind, like an index filter or a momentum filter for example, might be another way.
Why don't you tell us the answer...what helps peak to valley draw downs? Is it only exits, the part where the trend bends?? Giving back something at the end of a trend is the inevitable part of a trend following system, but I don't think this is the only factor that contributes to the depth of a peak to valley drawdown.
The next market phase could be non-trending and volatile. False breakout territory. How do you prevent your system from digging itself further into the valley 1R at a time. Moving the stoploss to prevent entire 1R losses every time your system gets suckered by a false breakout might be one way (the beauty is I get to test it). Keeping your system out of an unfavourable market with a filter of some kind, like an index filter or a momentum filter for example, might be another way.
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