You said you trade options. You also said that you lost 40% of your trading capital in 2 days. Further you lost 1K per trade.
I do not know if you trade Bank Nifty or Nifty. Let me discuss from Nifty perspective. I do not know your time frame. I do not know if your system has positive expectancy. I do not know how many trades you do per day. I do not know if you buy or sell options. I also do not know if you trade monthlies or weeklies.
Nifty underlying is at 14600 approximately. Nifty January Futures are at 14630. Options are valued based on futures except for on the expiry day. But for convenience let us say Nifty is at 14600. Now, one lot of Nifty has 75 shares. So, 14600 times 75 is 10.95 Lacs. or close to 11 Lakhs. If we are trading in nifty lot, we are trading a product that has the value of 11 lakhs. Last few days, Nifty has quickly moved 100 points intra-day. Some times more than that. Even 1% movement is now Rs. 11,000. How much of an adverse movement can your account tolerate? You may be buying options and so you may feel that 11 lakhs is not relevant for you. But options purchase is merely seeking a premium of the that amount one can lose completely, especially if you are dealing with weekly options. In weekly options a position can lose its value fast if it becomes OTM.
If you are buying Bank Nifty weekly options, 1% adverse movement in Bank nifty can make ATM option quickly into OTM and the option can lose value beyond redemption in matter of minutes.
Even if everything goes right with options, IV changes can create havoc in trades.
Have you considered these points in structuring your trade strategy?
I do not know if you trade a specific set up which repeats often. If so, with experience, you could handle that specific occurrence. This approach could also limit the number of trades per day/week etc.
I hope this helps. If this does not make sense, please ignore.