At this point all our trading is done utilizing equity options, especially various option combinations like Bull call or Bull put which enable us to scale in or out and turn losing positions into positive ones.
Everyone has a plan…
..until they get punched in the face.
Mike Tyson
So it happened to us as well. First large drawdown in a decade. It occurred during large market duress in October 2018 – December 2018 period. Funny enough, trading systems were designed to excel in this type of markets. And yet, perfect storm hit us right into a place we were most vulnerable. We designed stop losses into the systems, but did not anticipate, nor has historical data gave us evidence, it will stop us out for 7 consecutive trades. This one time event made our trading systems obsolete overnight, and stop loss as a risk controlling parameter is clearly not enough to make them robust enough to endure rough patch. So, 2019 was year of going back to the drawing board, and hopefully 2020 will be year where we can continue upward with new Humble trading system