Day 116 — Another Tough Loss: When Automation Teaches Patience

Just one day after my largest drawdown so far, another heavy loss hit — this time from the 9/23 DTE Double Calendar automation.
It’s hard not to notice the irony: the two biggest red days came right after I made a conscious decision to give full control to automation and step back emotionally.

Still, that’s exactly what this 1000-day challenge is meant to test — the conviction to stay systematic even when the system hurts.


💼 Trade Recap

ParameterDetail
Opened OnMon, Nov 3, 2025 · 9:36 AM
Closed OnThu, Nov 6, 2025 · 11:36 AM
UnderlyingSPX @ 6865 → 6720
Lot Size2
Net Debit76.00
Exit Credit58.75
Realized P/L–$3,461 (–22.8%)
ExpirationStrikeTypeActionQtyPrice
Nov 126760PSTO224.89 cr
Nov 126960CSTO218.34 cr
Nov 266760PBTO261.09 db
Nov 266960CBTO258.14 db

SPX dropped nearly 150 points during the trade’s life, expanding volatility and hammering the short strikes.
The delta-based exit was never triggered because the move wasn’t sharp enough on day one — instead, slow volatility grind eroded the position over multiple sessions.


🧠 Reflection

These back-to-back losses are tough.
But they’re also part of a statistically normal sequence in long-term systems like this.
Backtests always show pockets of drawdowns — it’s just different when you’re living through them in real time.

What makes this period meaningful is that I didn’t interfere.
No premature exits. No hedging out of fear.
Just pure process — letting automation execute and record results faithfully.

And while it hurts in the moment, that’s the only way to collect real-world data that validates (or challenges) the system.

“True discipline isn’t proven on green days — it’s measured on red ones.”


📈 Big-Picture View

Even after two large losses, the 100-day-plus journey still sits well above the starting balance — a reminder that losing weeks don’t erase cumulative consistency.
Systems are built for long-term averages, not short-term validation.

I’m resisting the urge to “tweak” or “optimize” — instead, I’ll continue collecting live data through the rest of November to see if the October–November weakness matches what historical drawdowns showed in backtests.


🧩 Key Takeaways

  1. Automation requires surrender. You can’t test logic if you’re always intervening.
  2. Drawdowns aren’t failures — they’re calibration points.
  3. Emotions amplify in sequence. Two losing trades in a row feel worse than the math says they are.
  4. Long-term edge > short-term comfort.

The real challenge now isn’t rebuilding the P/L — it’s rebuilding confidence through consistency.
This week might hurt, but it’s part of the story I signed up to tell — the real side of trading systems: process over perfection.

Disclaimer


The information presented in this blog post is for educational and informational purposes only and is not intended as financial or investment advice. I am not a licensed financial advisor. All trading strategies discussed reflect my personal experience and are not recommendations to buy or sell any security or derivative.

Trading financial instruments such as options, futures, or stocks involves significant risk and may not be suitable for all investors. You should conduct your own research, consider your financial situation, and consult with a licensed financial advisor before making any investment decisions.

Past performance is not indicative of future results. Use of this information is at your own risk.

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