With any trend following approach, there is something called drawdowns. A drawdown in trading is simply a measure of how much an account has lost until it begins making money again. When in a drawdown, traders often panic and worry until they give up on any progress they have made. I'm amazed at how little information there is on drawdowns when looking at any trend following method being advertised in books, courses, online, etc. The reason a trader needs to understand and expect these occurrences is so they can remain calm and confident when they inevitably do happen. Weather the "storm" until the sun comes back out again. Because we follow the market, when the price action stalls and gets choppy, it's unlikely your account will go up in value during these times. Losses will out number gains because we are simply working with what the market gives us. Once the market picks up steam, you will be there to reap the rewards once again. As a trend follower, you are not trying to predict the future. All you're doing is entering the market with systematized buy and sell signals, then following the market up or down along the way, setting stops at key resistance levels in order to protect yourself which eventually leads to profits.
I've used many methods in trading over the years and this is the only one that has stood the test of time, almost guaranteeing long term success. At the same time, rainy days will come and it's your job to be prepared and once the storm is over, be there to enjoy the sun once again.
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