Why a Losing Streak Doesn't Automatically Mean Your Strategy Is Broken

Even a strategy with a genuine statistical edge can experience a losing streak.

A few losses alone don't prove the strategy has stopped working.

But that doesn't mean I should ignore them either.

I review whether I followed the rules, whether market conditions changed, and whether the recent results fall outside what I would reasonably expect from the strategy's historical performance.

I avoid making emotional changes after every loss.

Evidence should guide adjustments—not frustration or the desire to recover money quickly.