This system seems to have managed drawdowns more efficiently than Bayona’s intraday systems. Although the core idea remains the same, it has been slightly adjusted, resulting in improved performance. In my opinion, this is a system with good potential for returns.
Now, let’s analyze the possible scenarios:
The philosophy I consider most prudent is to set the maximum drawdown at $19,670 as the limit to risk during 2025-2026. It’s important for investors not to trade with amounts lower than this, as doing so significantly increases the likelihood of experiencing statistically normal, yet unnecessary, losses.
The previous chart shows the evolution of the maximum drawdown of The Sound of Freedom. As observed, the drawdown has increased, and it is quite possible that it could be even higher next year. For this reason, risking less than $19,670 in this strategy is not considered a suitable option.
Good trading bot!
Disclaimer:
The information provided in this communication is for informational purposes only and does not constitute financial advice, recommendation, or endorsement of any particular strategy, investment, or trading system. All investments and trading carry risk, including the loss of principal. Past performance is not indicative of future results. It is important to conduct thorough research and consult with a financial advisor before making any investment decisions.