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Risk

How to reduce drawdown when running strategies

Practical ways to reduce risk: limits, filters, smaller load, pauses, and re-optimization.

Reduce load when the market changes

Drawdown often grows when a strategy runs in a market regime it was not designed for.

The first risk reduction step is to reduce position size or pause the preset.

Look at reasons, not only the result

Review recent trades: were entries aligned with strategy logic, or did the market become noisy? Did stops and take profits behave normally?

This helps distinguish normal working drawdown from a sign that the preset no longer fits.

Use limits and reassessment

Daily limits, stop risk, and max active positions prevent one streak from damaging the entire period.

If quality worsens, return to backtest and re-optimization.