with 60% accuracy / success rate, in theory you can have;
4 losers in a row out of 10 trades
8 losers in a row out of 20 trades
40 losers in a row out of 100 trades
The former is more likely to occur than the latter is.
The outcome of any single trade is random, you should be thinking about probabilities and expectancy over a series of trades.
20 trades is a good enough sample size to give your edge time to play out. If it doesn’t after 20 trades, you probably don’t have an edge.
Do you really want to trade a strategy that doesn’t make money after 20 trades? Maybe that’s something else to think about.
Obviously, you have to follow your trading plan and execute it consistently regardless of the outcome of the previous trade. Sabotaging yourself or bucking your system is another problem entirely.
With that being said, after 3 losses in a row, it is psychologically more difficult to take the next trade. But, it could be the beginning of a string of winning trades that will allow you to recover from the draw down and maybe show a profit.
But you skipped them because you took a break or doubt crept in or you went looking for the next “system”.
Then when you return to trading again, you execute the signals from your “system” while it runs into another string of losses. Or, it just doesn’t provide you with an edge.
Its a potential negative, emotional and financial spiral.
You need the right mindset, confidence in your system/strategy and solid risk/money management. It all must work together.
The outcome of this trade is not relevant. Think and approach trading in terms of series of trades, and detach yourself from the outcome.
You will know if its you or your system with this approach.
Easier said than done…