@Satyam_Sagar , thank you for pointing out 
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Risk management is completely upto us. What is a good stop can be tested. You will have a range of good options. Sometimes atr stops are good sometimes % based ones. etc etc. Pick one and stay consistent.
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One needs to have a reasonable idea on your past max dd. Note that there is a large risk of underestimating it, as we can optimize rules and curve fit it to make DD look smaller. We dont have that many severe DD events, so just tweaking rules to over optimize it can happen without knowing but it may not hold in future. This is esp true if trade count is low. Atleast one should expect future DD to be higher - say 2x. Future is anyway unknown and things can happen.
For example -
For my main system running for 5+ years, my actual DD stayed around my estimate overshooting it only slightly.
A system i made recently immediately gave 1.5x what i thought. Maybe i got unlucky or i over optimized it a bit, maybe both. It recovered but now i have to reduce its risk and have a relook at the rules… -
Having an estimate of past max dd, we can size positions so that max past DD is under some % of capital. And ideally with 2x of this target max dd should be not too uncomfortable and should not break us.
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stop-loss discipline - If you have tested your system thoroughly and understand that its a long term game, then this problem just goes away. I am instead afraid that my trades wont match my backtest. Dont do shit. Its tougher for discretionary systems - i have no inputs for that as that did not work well for me and it was too stressful.
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managing trades under volatile conditions - You can use volatility based stops and test other things if needed, but generally i dont explicitly change system behavior due to volatility. Sometimes you get shaken out due to up down moves, Sometimes you get large moves in your favour
Risk / DD can be limited by sizing things lower. Returns will also reduce. I prefer to keep it under 15% at single system level. And with multiple systems it generally is under 10% but could go more in future.
Also trading multiple uncorrelated systems is the holy grail for managing this.
Consistency is not in my control. I have had drawdown periods upto 6-8 months many times at single system level. Nothing i can do about it, i don’t sell options. Even well established well known traders like Andrea Unger has had flat years.
So that’s the game and uncertainty is a huge part of it. We have no guarantee and need to evolve systems as needed.
Best to try and keep adding systems to diversify and dont risk too much.
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Hi Aishwa,
While I appreciate your drive to do well in intraday trading, I’d suggest asking yourself a thought experiment that might give you clarity.
- Why do you truly want to succeed in intraday trading? Is it purely for more money, or because it gives you something challenging and engaging enough to feel like a mission in life?
From what I’ve seen in my limited experience, many people are drawn to trading because it feels like having something of their own—like a business or an entrepreneurial venture. It gives them that “kick.” But here’s the key question: if, 20 years from now, you looked back and your trading journey ended with a negative PnL, would you regret the time you spent on it? Or would you still be glad you gave it your all?
Now ask yourself the same question for something you truly love—say, hiking. If, 20 years from now, you had spent months or years hiking, would you regret it or would you deeply appreciate the experiences, regardless of the financial outcome?
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I actually asked myself something similar a few days ago, and that’s when I realized I still want to learn more. I’m investing for my future, but I also genuinely enjoy this — the challenge, the thrill, and the constant push to do my best.
The money I lost recently was from one silly mistake — trying to recover an auction penalty — but I accept it fully and, honestly, I don’t regret it. It was a lesson I needed to experience for myself. (but currently its a bit stressful since I accepted my mistake)
Even if, years from now, my trading journey ends with a negative PnL, I know I’d still value the experiences, the skills I’ve gained, and the discipline it has taught me. For me, it’s not just about the money — it’s about the personal growth and the satisfaction of giving my all to something I enjoy. I don’t want anything from trading as in you know, because my primary profession is good I still like it to the best. However, I also love this 9-10 am thrill. After 20 years I don’t want to regret that I lost or ran away from this while I could have tried to learn in better way…
PS: The journey will not be in negative atleast that much I know, because year back when I started with 0 experience and now I see the improvement…
Here I really wanted to understand peoples perspectives as there are people who have been trading from years … and its a great thing I did…
I met good people, got really good advices and lots of support.