DislikedExcellent question. One method i am looking at adopting, is to restrict losses to a max - daily, weekly and monthly. Let your winners/profits ride, but put a trailing stop to it.
Max Loss Target Profit (2 X max loss)
Daily - 3% + 6%
Weekly - 8% + 16%
Monthly - 16% + 32
Assumption: Risk max 1% per trade, min Reward-risk ratio should be 2:1. Max 3 trades per day.
For daily, if there are 2 consecutive max losses, reduce positions to half. Stop trading if daily max loss is hit.
For weekly, if there are 2 consecutive...Ignored
Working towards CME membership