Tony’s third emotion to handle is Desperation.
As traders, we are familiar with desperation. It usually shows up after we’ve had four or five losing trades in a row.
A major advantage of mechanical systems is they can be back tested to show most consecutive losers. If a system shows 10 or 11 losses in a row over back testing and still performs well, you should expect to have 10 or 11 losses in a row in the future.
Don’t get desperate. The system is acting within it’s parameters at 4 or 5 losses in a row. Should the system show 13 or 14 losses in a row in this example, that might be a case to step back and evaluate.