Against the backdrop of the current crypto market — once again a roller coaster — the topic of surviving drawdown is especially relevant. At the time of writing, Bitcoin is well below its all-time high and volatility is elevated; analysts compare the depth of the correction to past cycles, but the market’s foundation has changed: more institutional money, flows into regulated products. It’s in this live, nervous, but structured market that we’re experiencing our drawdown — not in a vacuum, but in real time.

Drawdown is when the account pulls back from a recent peak. In this article: how we go through it on a live account — what we do, what we don’t do, and why we don’t break the system.

Live account, real drawdown, cool head.

When Bitcoin drops and the account shrinks

The market doesn’t owe you growth. When Bitcoin and altcoins fall, the account balance drops from the peak — that’s drawdown. It’s inevitable if you’re in positions or strategies that hold exposure. The key is not to panic or change the rules on the fly: decide in advance what scenario is acceptable and where you stop the system.

Our situation: what’s happening with the accounts

We’re not trying to “paint a pretty story after the fact” — this is a live snapshot. On our Bybit account, drawdown is already noticeable, but it remains within our risk parameters: the limits on maximum acceptable capital decline haven’t been hit, and the system doesn’t require emergency unwinding. Recently a stop-loss triggered on one asset — it didn’t “save” us from overall account drawdown, but it limited the damage locally and showed that risk-management discipline works in a falling market too.

The main factor keeping us afloat so far is diversification: some strategies don’t overlap by assets and timeframes, some run on other exchanges and with different leverage. An extra cushion comes from our BingX account (referral link — signing up via it supports the project), which we scaled into relatively recently: the ORACLE 1.1 strategy runs there — effectively a separate module with its own drawdown profile and recovery periods. The aim of this article is to show honestly: yes, there is drawdown; yes, it’s unpleasant; but it’s part of the scenario we planned for, not a black swan.

Our survival plan

In short, what we do when the account is in drawdown:

• We don’t average down without a plan — we don’t add in “the dip” just because we’re scared or because it “feels cheap.” Averaging down is a separate decision with clear rules (size, limits, stops).
• We check that the system is following the rules — stops in place, risk limits not exceeded, bots within their parameters.
• We don’t shut everything down on emotion — if a strategy is designed for drawdown (e.g. grid in a range or diversification across assets), a panic stop can lock in the worst moment.
• We look at overall portfolio risk — how drawdown across different assets and strategies adds up. For capital allocation and risk, see risk management with bots and the Diversification and trading system setup series.

Transparency: we maintain a public trading journal on TMM — you can see our real stats there: number of trades, win rate, equity curve. It’s an openness experiment: we show not only wins but also drawdowns.

Drawdown we don’t want to “average away”

Averaging down (adding in a fall) can be part of a strategy — e.g. DCA by rules. But “averaging” just because price fell and you want to lower your average entry is a dangerous game: you can pour more into a falling asset and increase losses. We don’t use averaging as a reaction to drawdown; when we do add, it’s under predefined rules and limits.

How to survive a drawdown without breaking the system

So that drawdown doesn’t turn into a broken system, we use a tiered framework: drawdown is measured in percent of equity with predefined bands — normal, elevated, critical. For each level we have defined actions: where we just reduce size, where we turn off some strategies, and where we accept defeat on a specific block. That way we don’t kill everything at an emotional low and we don’t average down uncontrollably.

What we do, step by step:

1. Set limits in advance — maximum drawdown on the account or per strategy at which we stop or revise parameters.
2. Don’t change the rules in a panic — don’t disable stops, don’t increase leverage, and don’t “double down” just because the market went against you.
3. Keep diversification — many assets and strategies reduce dependence on one move; part of the portfolio can be in drawdown while another part is working or in profit. Having separate sources (other exchanges, other strategies) reduces the psychological pressure of one “red” account.
4. Separate system vs mistake — if drawdown is the result of the system working normally in an unfavorable market phase, we reduce risk but don’t rewrite the logic on emotion; if drawdown is due to a clear mistake (over-leverage, broken stops, manual intervention against the rules), we fix that first.
5. Revisit the plan periodically — remind yourself what horizon and risk the system was built for. That helps avoid decisions driven by one candle or one day.

After a drawdown it’s useful to review: what worked, what didn’t, whether limits were breached. That way the system isn’t broken — it’s refined.

FAQ

What percentage of drawdown is normal?

For conservative strategies — 10—15%, for moderate — 15—25%, for aggressive — up to 30—40%. The key is to set the limit in advance and not exceed it.

When should I turn off the bot?

When drawdown reaches the preset limit (e.g., 20% of deposit). Not earlier — due to emotions, and not later — to avoid losing the entire deposit.

What if I want to shut everything down?

Breathe. Drawdown is part of the system, not an error. Check diversification: if other strategies are in profit, the overall portfolio may be fine. Don’t make decisions on one candle.

Why can’t you always average down?

Averaging increases your position in an asset that’s already falling. Without clear rules, this quickly leads to larger losses. Average down only according to plan, with limits.

How to tell if drawdown is an error or normal?

Check: were risk limits exceeded, did stops work, was there manual intervention. If the system worked by rules — it’s a normal market phase.

Summary

Drawdown is a normal part of trading. On a live account we go through it by sticking to the plan: no averaging without rules, no shutting everything down in a fit, keeping limits and diversification. The goal isn’t to show “perpetual growth” but a robust system that survives both up and down without turning drawdown into disaster. Survive the drawdown with a cool head and keep the system intact for the next market cycle.