I am failing to hold my winners what is the best way to overcome your fear of loosing when you betting high ?
The way I do it is by coding , backtesting and figuring out the math metrics of strategy - accuracy, risk - reward ratio, drawdowns, losing and winning streaks, worst loss, best win etc. I make sure that backtest is done on large historical data set to capture different probable market patterns. Once this objective process is done and I make peace with all probable outcomes it becomes easier to trust the system and just follow it.
Also trading is like doing a business and ideally it should be done with money which if you lose shouldn’t hurt you significantly. Strategy capital should be worked out from the backtest metrics such that the absolute drawdown is within your comfort zone for a given position size. In other words u r position size relative to capital should be such that the drawdown u may incur in the strategy with that trade exposure should be ok for you.
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