Segmentation
Compare baseline trades with post-loss trades.
A practical review separates normal-condition trades from trades immediately after one loss and trades after two consecutive losses.
- Win rate by segment
- Average P&L and average R
- Number of trades after each loss state
Behavior shifts
Losses can change more than the next outcome.
The post-loss pattern may appear in position size, time between trades, setup quality, session duration, or the decision to keep trading past a planned stop.
- Position size changes
- Shorter time between trades
- Longer sessions after a red start
No universal rule
Your data should decide whether performance deteriorates.
Avoid blanket rules like always stopping after two losses unless your data and risk plan support it. The goal is to discover the conditions where your own process weakens.
- Historical patterns do not guarantee future results
- Use sample size and context
- Turn the finding into a testable guardrail