I copied this passage into my notebook and come back to it every so often.
There’s a lesson here about drawdowns:
Maximum drawdown tells you more about a strategy’s quality than its annualized return. A strategy that returns 100% annually but suffers a 70% drawdown along the way is one you simply won’t be able to hold in real trading. Paper gains and gains you can actually stick with are two different things.
Take $RLC today as an example: it’s now at 0.867400, up 43.73% over 24 hours. This kind of market action is a perfect illustration of the point above. It’s no coincidence—it’s human nature repeating itself in the markets.
It sounds simple, but putting it into practice takes a lot of expensive lessons.
More tomorrow.
#RLC #投资哲学 #交易心态 #Crypto
There’s a lesson here about drawdowns:
Maximum drawdown tells you more about a strategy’s quality than its annualized return. A strategy that returns 100% annually but suffers a 70% drawdown along the way is one you simply won’t be able to hold in real trading. Paper gains and gains you can actually stick with are two different things.
Take $RLC today as an example: it’s now at 0.867400, up 43.73% over 24 hours. This kind of market action is a perfect illustration of the point above. It’s no coincidence—it’s human nature repeating itself in the markets.
It sounds simple, but putting it into practice takes a lot of expensive lessons.
More tomorrow.
#RLC #投资哲学 #交易心态 #Crypto