Draw Down of Trading Strategy

Hello Friends,

As I am Practising one trading strategy from last 3 months in Crude Oil Trading. In this Strategy I am facing 20 % Draw down in my Account with continuous 8 failed trades. Later My strategy giving positive results and giving around 10 % returns per month.

Seniors please advise that Can I proceed with above draw down or better to reduce the Position Size? Is 20 % Draw down is Normal or it is a bit higher?

3 months data is not sufficient to backtest a strategy. Atleast you need 3-5 yrs datas. More is better.

Yes it is very higher for one loss streak.

Thank You Sir

I did not have 3 to 5 years data. I did live trading for last 3 months as a begining I am trading very small amount on this strategy.

I will increase my account size slowly. How much You will recommend the Drawdown Limit. Can I reduce my position size to half which may limit Drawdown to 10 %.

Your Valuable reply is appreciated Sir.

If your live trading experience 3months only means , You have to face many steep learning curves. Its takes atleast 2-3yrs to be a consistent trader. So trade very very light mode (1 lot crudemini) and learn.

Thank You Sir.

I am also in the same plan sir. In 2 Years I want to be a full time Trader.