Not talking from experience, but could one manage an account at their brokerage firm that only has a certain amount of money on a weekly schedule. This way the account will receive a margin call if the stop is missed some how...
Life tells you, it's high time to take that pending vacation, yup it's bit costly reminder... but you wanted it that way!
Given that you have been successful for past 10 years, you already have the rock solid infrastructure,
Only thing that is missing is a 'cooling down plan' in your trading plan or you just forgot to cool down esp. when times get tougher.
As in the movie inception, every trader needs a totem, that tells us we are in altered-state of consciousness.
My totem is "% drawdown per session", "risk per trade" and "turn over".
When some thing is unusual in the above 3 variables, no matter what I think is right, I take time to cool down, markets can wait but money tilted away is gone for ever.
The following user says Thank You to rocktrader for this post:
Do you use equity stop loss? Is it proved to be effective? I mean you have 100K and when it reaches 90K drawdown you stop trading for some time. I do not mean trade stop loss. I mean your trade stop loss may pull you back to 85K but your equity stop loss has a higher priority. So becore 85K you stop trading when equity is 90K. Saw this mentioned in some post but never used it or see someone use it around me. Must be a new thing. I am thinking this thing would have stopped my %50 loss.
I am small trader with only 3+ years engagement with market and first 2 years were horrible and this year has been endless snake and ladder game, but I am improving. Having said that you can put my words in proper perspective.
Yes, I use equity stops lately, am not sure how effective or hindering but I can tell this, all my disaster kept piling up when I had no method to take me away from 'hot-tilt-mode'. Not only on draw down when am at equity peaks, I start trading very cautiously and will hesitate a lot to put on more risk per trade.
It has become so predictable after an euphoric win at equity peak, I used to give back huge chunk of the money in next 5 days, and will end the month below the equity peak!
I can't tell equity stops will work for every market and every strategy, for instance if one is trading weekly-monthly time frame with small risk and know what they are doing, they can endure bigger draw downs and keep their cool but that should be logical decision coming from 'cool state of mind'. Some trend following gurus are known for these kind of behavior.
If you allow me to do some cold reading on you, any or some of the following statements should be true to you:
1) Your equity high or low happened few weeks or months before our D-day (disaster day).
logic: equity peaks or lows trigger the tilt button
2) From the day of minor loss to this final precipitation you were hooked and never relaxed.
you have been missing your vacations, lone relaxation times.
logic: if you had taken time to cool down, chances are there you would have asked 'wtf is going on... let me press the reset button'.
3) You have become desperate and increased the risk to unreasonable amount or over traded to get back the losses.
logic: revenge trading, results are obvious.
anyways... happy new year and great days are ahead!