Bernard Drury of Drury Capital writes in his May 10 newsletter:
“While trading losses are never welcome, we know that encountering price corrections is an intrinsic part of trading these markets. As ever, [our] Program employs a disciplined approach to trade selection, position sizing, portfolio balancing, and equity protection when adverse market conditions are encountered. During a period when markets are behaving in a manner contrary to positions, [our] Program gradually reduces risk in a systematic manner. In some cases, positions in the opposite direction of the original trend may be established, even while some trades in the same sector are still positioned in the original direction. It is a dynamic process that responds continuously to changes in market conditions.”
Wise insights from a long time trend follower who I was fortunate to spend time with.