The most important thing in trading is to control the maximum drawdown.

Especially for the drawdown that exceeds the decline of the market, it is intolerable. Following the market rhythm and optimizing the profit and loss curve to be smooth enough is the real way of trading.

People in the currency circle like to talk about income, but few people talk about drawdown. The actual importance of controlling drawdown is far greater than the rate of return.

The maximum drawdown is not the decline in the face value of the account, but refers to the maximum decline in the net value after the book reaches a new high. To sum it up in one sentence, it means that the income cannot be locked and the account is on a roller coaster.