The most important thing in trading - controlling the maximum drawdown

People in the cryptocurrency circle like to talk about returns, but few people talk about drawdowns. The actual importance of controlling drawdowns 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 value reaches a new high. To sum it up in one sentence, it means that the returns cannot be locked in, and the account is on a roller coaster.

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 sufficiently smooth is the real way of trading.