Hi, I need some ideas for reducing drawdown in momentum strategies. I can break down the problem into 3 questions:

  1. Is a strategy with a good YoY return but 70% drawdown usable?
  2. How do you minimise losses during a quick reversal/crash?
  3. How do you prevent whipsawed during sideway moves?
At the moment, I use volatility and oscillators to handle the above (not very successfully). I am looking at Breakout as well.