I just came across a passage and paused for a moment.
It made a point about drawdowns:
Maximum drawdown tells you more about a strategy’s quality than its annualized return. With a strategy that returns 100% annually but suffers a 70% drawdown along the way, you simply wouldn’t be able to hold on in live trading. Returns on paper and returns you can actually stick with are two different things.
Take today’s $ETH as an example: it’s now at 2,435, up 5.93% over the past 24 hours. This market action perfectly illustrates the point above. It’s no coincidence—it’s human nature repeating itself in the markets.
It sounds simple, but it takes a lot of tuition to learn it the hard way.
Wait for the signal, not the mood.
#ETH #投资哲学 #交易心态 #Crypto
It made a point about drawdowns:
Maximum drawdown tells you more about a strategy’s quality than its annualized return. With a strategy that returns 100% annually but suffers a 70% drawdown along the way, you simply wouldn’t be able to hold on in live trading. Returns on paper and returns you can actually stick with are two different things.
Take today’s $ETH as an example: it’s now at 2,435, up 5.93% over the past 24 hours. This market action perfectly illustrates the point above. It’s no coincidence—it’s human nature repeating itself in the markets.
It sounds simple, but it takes a lot of tuition to learn it the hard way.
Wait for the signal, not the mood.
#ETH #投资哲学 #交易心态 #Crypto