API Works Hub

Soft and hard drawdown lines

Two thresholds keep a losing streak from rewriting your rules mid-session.

A single drawdown number is brittle. Hit it once and the day ends; hover just below it and behaviour often worsens—size increases, reviews shorten, and the next loss arrives faster.

Soft and hard lines work better. The soft line triggers reduced size, mandatory journaling, and a pause before new risk. The hard line ends discretionary trading for a defined period and starts a structured review.

Write both lines before the month begins. Decide the actions when equity is calm. During a drawdown you will not invent better rules; you will only need the ones already on paper.

Back to insights Ask about training