Last week I stumbled on a quote on Instagram that made me laugh, as it reminded me of trading through drawdowns:

I’ve been trading full-time for over a decade. Each time I have to face new drawdowns I want to believe that it will be EASIER to get through them…

But for some reason, it never does!

Despite the multiple drawdowns I’ve already traded through, and despite how well I’ve prepared for them…

– drawdowns suck every time!

It doesn’t matter how long you’ve been in the trading business, they can still make you frustrated and doubtful. Even to the point where you start doubting your own abilities and whether you’re in the right business at all.

Yup, it’s harsh – but welcome to trading!

But wait, it gets even worse:

The even more challenging truth is – your worst drawdowns are still ahead of you.

If you believe you became “stronger” by surviving the last drawdown, then congratulations. I’m proud of you.

But, are you really ready for even BIGGER and LONGER drawdowns in the future?

Drawdowns that could start next week?

Or your next trade?

Believe me, this is a highly probable scenario.

I know many traders don’t want to hear this.

But be honest with you, have a look at the picture below, and tell me:

How would you feel if you’d just overcame the nasty drawdown circled, only to witness a new and BIGGER drawdown a few weeks later?

Just imagine you’re trading this strategy:

You feel like a real king with 9 winners in the row, and you think you’ve figured it all out.

Bravo!

But then, a series of losses hit and ALL the profits from the last 9 trades are gone. And you’re saying “bye-bye” to even more money from your trading account.

Painful.

Frustrating.

Self-doubt kicks in.

You start praying for a miracle…

Then BOOM!

You get a few great trades, recover all the losses and hit a new equity high. You feel like a genius again!

You knew the strategy would recover, right? :-)

But the celebrations don’t last long.

You suffer another streak of losses and hope is gone again.

The frustration is back, and you start seriously asking:

“Is the strategy broken? What should I do?”

And the worst part is:

This could go on for months. Over dozens of trades. While you wait to see if the strategy will finally pull out of the long and painful drawdown.

I know what I’m talking about, because I used to experience situations like this quite a lot in the past!

And believe me, it was REALLY frustrating and REALLY painful.

Fortunately, it had a positive side too.

At one point I got so frustrated with all these painful drawdowns, that I had to say STOP!

Out of the never-ending frustration, I went back to the drawing board. I had to find a solution that would reduce drawdowns. I had to find relief from the frustration and pain.

And after many sleepless nights I finally managed to come up with a solution.

A new and highly efficient way to use Market Internals.

And boy, did I get results!

In most cases, I could reduce my drawdowns by 20-35%. And in some cases by more than 50%!

And without curve-fitting.

Now, a 35% reduction might not sound like much, but believe me, slashing a 10,000 USD drawdown to only 6,500 USD is a HUGE step.

And when you see the powerful impact this can have on your entire portfolio, it’s AMAZING.

In fact, my drawdown reductions were so effective, that for a long time it used to be one of my personal secrets. A technique I spent years developing and perfecting and didn’t want to share with anyone.

But after a few years, I finally decided to reveal my drawdown-slashing techniques. Now Trading Market Internals students are using this knowledge to achieve similar results!

In fact, the Trading Market Internals program has already been implemented by some exceptional traders. Take Max Schulz for example, who came 3rd place in the 2017 World Cup Trading Championship with a +111.7% return.

This is what Max shared about Market Internals after he used it to achieve his amazing 3rd place:

Great job, Max!

So, as you can see, smart traders do everything they can to make sure that what didn’t kill them today won’t kill them tomorrow (or at least f*ck them up mentally!).

How about you?

More about the Trading Market Internals program here.

Happy trading!

Tomas & Andrew

 

Sick of long and painful drawdowns?

✓  5-step framework you can use right away to improve your trading performance

✓  A proven solution to slash drawdowns by up to 50%

✓  Applicable for index futures, stocks, and ETFs

Quick and easy to implement

✓  You get the strategy code, so you can do it yourself!

DISCLAIMER: Trading involves significant risk of loss and is not suitable for everyone. People can and do lose money. Hypothetical results have many inherent limitations. Past performance is not necessarily indicative of future results.

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