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Scaling into energy positions and managing drawdowns – how do you do it?
Been trading some of the energy futures like crude oil and natural gas lately, primarily on the long side given the volatility. I've had a few good entries but struggle with scaling into positions when the initial move is against me, or even just adding to winners. My max drawdown limits are clear, but the psychological aspect of adding more exposure when the market is testing my initial thesis is tough. How do you guys manage that balance, especially in these volatile commodity markets where retracements can be quite deep before the trend continues? Do you pre-define scale-in levels and stick to them no matter what, or is it more of a reactive decision based on price action?
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