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Scaling down position size after a drawdown
I've been working on my risk management, aiming for consistent 1% risk per trade. However, after a particularly bad week where I hit my max weekly drawdown, I find myself hesitant to even take 0.5% risk on new setups. Do others scale down their position size even further after a significant drawdown, or is it better to just stick to the predetermined risk-per-trade and focus on regaining conviction?
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That's a really interesting question. I've had similar experiences after a bad trading period. Do you find that scaling down helps you regain confidence, or does it make you feel like you're not fully committing to your strategy?