Recorded live September 13, 2022

This webinar is specific to the Drawdown document issued on August 29, 2022, "The Dreaded “D” Word, August 2022"

Live questions from Members  

1. Factor's underwater curve changed dramatically around 2014. Is this due to measuring DD using closed trade NAV, or due to aggressive risk management? 13:50
2. What's your most remembered drawdown period? 16:01
3. How much of the drawdown period is self-inflicted as in we make the period worse ourselves rather than sticking to the trading plan we all should have? 18:01
4. What is an "acceptable" drawdown for those who have retirement accounts and do not have the ability to do shorter-term trades, hence, needing to hold longer? Whether that be an index fund, BTC, etc. 20:18
5. I started paper trading eight months ago and have had equity vol but no progression; still at around break even. Very difficult to know if this is a natural DD or just not a working system! 23:22 (A Brief Introduction to Probability Theory and the Random Distribution of Results: Understanding the Concept of Sequencing in a Trading Operation) 
6. What practical steps do you take to deal with mental torment? 25:57
7. My data over two years shows that if I take every trade my total performance would be 6 X greater with fewer drawdowns. Common reasons for not pulling the trigger are: Pattern extended from MA's, Support/resistance close, pattern looks loose, not text book pattern, looking for more compression before breakout. However, looking back, they have more going for it than not. Do you have any advice here? 29:07
8. You mentioned "be able to take many small losses", does limiting risk to 1% but not moving stops aggressively satisfy this? 31:38
9. The first line in your how to have success in trading is having Defineable and Comprehensive trade. Is this a written document that you continually update? If so, is it fairly detailed and includes all of your trading weapons? I would love to see an outline if this is something that exists. 34:23 (BOOK: Thinking in Bets by Annie Duke) 
10. How do you decide when to move stops and to where? 38:05 (A protocol for Entering Trades Using ATR Stop Levels) 
11. What was the pivot to introducing varied bet size? My struggle is when to increase bet size, and if the next is a big winner then I'm missing out. 42:08
12. Do you think it makes sense to start cutting trade size if you see lots of tradable patterns to limit the risk in having more signals than normal? 44:44
13. Experience is the best answer to many trading questions ... Knowing your "edge" & knowing how to calculate that - Before! - placing a bet ... discovering this changed my life ... Thank you, Peter, for this discussion! 48:20
14. You scale out of trades and less frequently add another traunch. Could you elaborate on when and how to take a second bite? 49:06

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