At lunch today we talked about how to handle overtrading, especially after good periods, when your equity curve is at new highs. That is probably the moment you get relaxed and make dumb trades, poor trades, which gradually leads to overtrading and a drawdown of maybe 5 to 10%, or even more. The solution we came up with is to withdraw the money immediately and spend it. Say you usually get a 5% drawdown: every time your equity curve reaches a peak, withdraw that 5% and spend it somewhere else. I think it is a really smart solution, especially for me, because I always overtrade after a good period and give back maybe 5 to 10% every time. This time I'm going to wire some out, so I create the drawdown manually; it is a fake one, not a real drawdown. It is not about the money, it is about the habits. The numbers don't matter, but if you can prevent yourself from overtrading or getting into a big drawdown just by wiring the money out, it is a really good approach.
Source: EP108 | 23 Oct 2026