DislikedThe key to manage drawdowns as in to not be exposed to large drawdowns is to not open trades during unfavorable random market conditions.Ignored
I am hopeless at any form of preventive technique to avoid them apart from dynamically adjusting (with lag)...however IMO this is where portfolio management using uncorrelated return streams has the ability to achieve this with all composite strategies turned on 24/5.
If you apply a single trading strategy that is either convergent or divergent in nature then you need to be able to 'filter' for market condition......For example if you run a live walk forward demo in tandem with the your strategy then you can use the equity curve of your demo to turn on and off your live trader. As drawdowns are building 'turn it off'......but once they start turning......turn your strategy back on. It still is lagging in nature and so far at least for me is less suitable than a portfolio approach using non-correlated divergent and convergent strategies......however I have not really fully examined this technique so far.
Quidquid latine dictum, altum videtur