What will a trading expert do if they encounter a consecutive drawdown?

If you have a trading system, a consecutive drawdown is a necessary loss within the system.

In other words, to achieve a certain level of profit, you must be able to endure corresponding losses.

This is the source of profit and loss.

The source of profit and loss comes from the consistency of system traders.

You must maintain consistency; if you incur losses, you must watch it happen. This is a trading rule that is set in stone. If you cannot tolerate losses within the system and arbitrarily change the trading rules, then you are not a qualified system trader.

A system trader's most important characteristic is that they only operate within the system's rules.

Non-system traders, or retail traders, have a significant problem: they act at will, doing whatever comes to mind.

Today they want to use this method, tomorrow they want to use that method, and the day after they find a new method.

What is the downside of this approach?

It lies in your inability to traverse and iterate.

On one hand, frequently changing methods prevents you from exploring all the boundaries of a single method, meaning that there might be pitfalls in that method that you are unaware of, which could backstab you in future trades.

On the other hand, frequently changing methods prevents you from iterating on a single method, meaning that you do not make progress. It’s like a bear that dropped corn after picking a watermelon.

True trading experts are not those who frequently change methods, but those who continuously cultivate their expertise in the same field.

Warren Buffett has been deeply engaged in value investing for decades, and George Soros has deeply engaged in high-frequency quantitative trading for the same reason.

Qualified traders are never afraid of drawdowns; drawdowns are actually important opportunities to test the trading system.