Technique to reduce max_drawdown
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Hello everyone.
I would like to ask if there is any technique to minimize drawdown?
Currently, my algorithms have a very high drawdown (in the range of 40 - 60%).
Thank you for your supports
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@illustrious-felice Hi, your sharpe ratio looks very decent, congrats. The high drawdown is likely because of the long holding time that is more than a year (in trading days). Besides that there are popular models such as the hidden markov model that identify market regimes and you could for example only trade during low volatility regimes. This is just one of many options, there are a dozen others such as stop-loss etc., which you can explore. I hope I could help you.
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@magenta-kabuto Thank you very much for your advice. I will research to apply your suggestions to the algorithm
