Been testing a new system and trying to reduce the drawdown on it.
I'm using a fixed $ position sizing with a fixed capital base (no pyramiding of profits). I have tested % risk position sizing and does not perform nearly as well.
I've found that increasing the number of trades taken will reduce drawdown (and profits) plus adding a profit % exit and a max loss % exit helps.
I set the % max loss based on removing the worst trades by maximum adverse excursion (MAE).
Tried an ATR stop but the above % stop seems better plus easier to impliment so removed it.
Any other general ideas on reducing drawdown please? Anything at all like using the equity curve or index filters etc etc