Since no trading system or strategy works all the time then what system can someone apply in order not to fall in to a huge drawn down/huge loses during bad times of a particular strategy,
Or is there a particular strategy that Will help you switch to another style if the market condition change?
diversify risk can help you in bad times
How? explain
you can create strategies for many financial instruments, different time frames and market conditions to complement each other
No that doesn’t make sense. Your strategy will have losers but you dont know when. Itll have winners but you dont know when. So if you start changing when you trade to guess when you lose you will miss the winners. It will change your profitability.
The ONLY control you have over what the market does to your trades, is managing your risk.
That’s it.
Make a good strategy and earn money from this market.
You would be much better off accepting that losses are a part of trading than trying to avoid them by finding the perfect strategy.
Many have tried and it doesn’t exist.
What starts out as an innocent effort to find the best possible strategy can take you down multiple rabbit holes that last year’s.
Just accept you will have losses. There is absolutely no reason why you should have large drawdowns - unless you are trading too large in size, or your methodology is wrong to begin with.