A losing streak can make traders want to change their entire system, but that is not always the right move. The first step is to separate normal drawdown from poor execution.
Review the last 10 to 20 trades and mark each one as planned or unplanned. If most losses followed the plan, the issue may be market conditions or sample size. If many losses were unplanned, the problem is execution discipline.
Then check whether the same mistake repeats. Are entries late? Are stops too tight? Are trades taken during news? Are you increasing size after losses? One repeated mistake is easier to fix than a vague feeling that everything is broken.
The goal during a losing streak is stability. Reduce size, reduce frequency, and review process. Do not rebuild the entire strategy while emotions are high.
Review the last 10 to 20 trades and mark each one as planned or unplanned. If most losses followed the plan, the issue may be market conditions or sample size. If many losses were unplanned, the problem is execution discipline.
Then check whether the same mistake repeats. Are entries late? Are stops too tight? Are trades taken during news? Are you increasing size after losses? One repeated mistake is easier to fix than a vague feeling that everything is broken.
The goal during a losing streak is stability. Reduce size, reduce frequency, and review process. Do not rebuild the entire strategy while emotions are high.
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