Some of our traders are experiencing this as well. Here are some of the lessons our traders have learned:
1) Commodities do not trade like equities. You need a separate PlayBook for each.
2) When learning a new product, earn your risk. Do not trade it with the same risk as your equities PlayBook, where you have a history of success. Prove you can trade the new product consistently. Add risk from success.
3) This is NOT the market to be playing for a Grand Slam.
4) Do not cede your structural edge in the market. As active traders, we can enter and exit much easier than bigger players. Book profits. You can always reenter.
5) Do not miss what you do best, hawking a new product.
6) Past success doesn't have to continue. Adjustments must be made in different market regimes and new products.
7) Being in your seat for the easy market is how you really get rich. Do not let hard markets, bad traders keep you from being around for those easy markets.
8) Shark and Druckenmiller push risk when they are trading well and making money. When in a drawdown there should be only one focus- consistency.
This is a tough market. There have been some trading products, if playing for a grand slam. But if you are learning a new product and learning from this drawdown, this will make you a better trader:
a) your PlayBook will be more comprehensive.
b) your ability to trade more products will pay dividends in the future.
c) you will reinforce the importance of building your trading business within market principles and guardrails.
d) your trading skills will improve.
Often the hardest markets, bad trading products, most painful trading times, propels elite traders to even new heights. We have seen that on our desk. They key is learning, making adjustments, and staying in the game.
Here is to many years of future trading success.
Jokes aside, this is the worst drawdown I’ve experienced in dollar amount, percent off the highs, and length of time in all of my trading career. I’m practically speechless how difficult it’s been getting any kind of gain bigger than the losers I’m taking.
I do have some swings in the background working but nothing close to level of inconsistency I’m having on every other strategy.
Long term I’ll work my way out of it but for now, holy shit this is something else.