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Question about managing drawdown with high R:R setups
I've been working on refining some reversal setups, aiming for R:R ratios consistently above 1:3, sometimes 1:5. The win rate on these, as expected, is lower, around 30-35%. My question is for those who run similar high R:R, lower win rate strategies: how do you typically manage the psychological impact and capital allocation during extended drawdown periods? Even with proper position sizing, a string of 5-7 losses can start to weigh heavily, and I'm wondering if there are common practices, beyond just 'sticking to the plan,' for navigating those times without either overtrading or losing conviction.
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