BlogJanuary 13, 2022Michael Covel

“Could you just tell me if these levels of losses are normal? These multiple month losses?…”

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Hello Sir,

I have read all your books and listened to many of them on top of that. I started trend following in July of 2021 and had a banner month. Since then, I’ve lost 4 out of the last five months to the tune of $14K which is a lot considering it was a $69K account. I have my rules I follow with the same discipline I had in the army. Donchian high/low over the last 20 days reached, enter with a 1% stop loss or 1.5 ATR stop…whichever is less. If I go into profit territory, get out when the price drops/raises 1.5 ATRs. Could you just tell me if these levels of losses are normal? These multiple month losses?

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Respectfully,

Name

I don’t know exactly what you are doing or your time frame or what markets you are trading. Can trend following have multiple months of losses? Of course.

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