“Enduring the Losing Phase”
Every system—no matter how strong the backtest—has drawdown periods.
Week 20 reminded me that the key skill isn’t predicting when those streaks end,
but learning how to sit through them without breaking the plan.
After the flat “patience” week that followed NVIDIA earnings, I entered just one position this week.
The trade was structured perfectly according to the 9/23 DC rules… yet as the market kept trending lower, the position slipped deeper into red.
As of this writing, it’s still open and sitting at a paper loss.
Active Trade
Trade Details
Opened 📅 Tue Nov 25 @ 10:15 AM (SPX 6691)
Initial Debit : 20.65
Current Value : ≈ 15.60
A red position, but still within stop parameters.
🧠 Reflections
1️⃣ Losing Streaks Are Data, Not Judgment
A string of losses doesn’t mean the edge is broken — it means variance is playing out.
Backtests hide the emotional cost of drawdowns; living through them is the real test of discipline.
2️⃣ Automation Prevents Panic
Even as the P/L fluctuates, my job is to watch, not interfere.
The exit logic will trigger when either the delta threshold or time decay criteria hit.
This removes “hope and fear” from the decision loop.
3️⃣ It’s Okay to Be Uncomfortable
Losses aren’t fun — but they’re how conviction is built.
If I can follow rules when the system is hurting, I can trust myself when it wins again.
📘 Journal Note
“The only edge worth having is one you can execute in a losing streak.”
This phase is mentally taxing but necessary.
I’m choosing to treat this week as a rehearsal for future volatility cycles — staying calm, documenting everything, and letting the math play out.