It may be useful to reduce lot size and recover slowly rather than betting on luck and try to revenge market.
It is easy to find an excuse for the loss but it is very difficult to repair the mental damage that usually happens after several losses or just one big loss. Traders begin to question themselves and lose their self confidence but it is important to bounce back even stronger than before. The first step to deal with the losses is to accept the responsibility and start with the basics again. Make adjustments to your trading plan, build strategy, practice and rebuild your confidence.
Yeah and it is crucial to avoid large losses because our mind tends to make decisions that attempt to get rid of pain as quickly as possible and it's often not the best way to recover because this often implies taking unreasonable risk
I often read where someone's backtesting was a few months, I may over do mine, but mine is often over ten years for intraday and up to 35 years on stocks, this way you can experience when markets going in different major trends or at ends of trends. I do know whatever I test, the highs/lows will be exceeded at some point. Intraday, if tested far enough, one day or week does not mean system has stopped working, but market not cycling to your system as usually does, take few days off and test, perhaps slightly larger or smaller timeframe needed.
%% GOOD; trend follower John H said what some call luck/ he calls a small sample size. Losses are a business expense + NO such thing as a business without expenses.
Unfortunately it's very difficult to tell if your system don't have an edge or trades in just wrong market regime, or proper "market regime" was just some luck however comparisons with buy-and-hold may give some valuable insights.
%% Good/education. Depends on the seasons also. IF i lost on SEPT seasons, with inverse ETFs\ that would not bother me much, because SEPT sells in stocks is one of the most common patterns. ONE week is almost NEVER enough time to confirm a good trend. ............
I agree and the only way to avoid big losses is by working on risk management and capital preservation.