Last week, the main Waka Waka account suffered a significant drawdown. It wouldn't be transparent or realistic to celebrate Waka's milestones and not address important events like this one, so it's covered in full.
In the first place, if you are trading with Waka or any other grid system and not using any risk management with it, I strongly recommend setting up proper risk management right now. The post about it can be found here. Every EA guide covers this topic, and I regularly mention that in MyFxBots published articles (even when talking about topics not directly related to risk management).
The first two things you should take care of when working with Expert Advisors (especially grid advisors) are money management and risk management. No matter what happens, you must have a plan to work with. The financial markets can put you in a lot of difficult situations pretty easily. It is for that reason that you should read this post first and then worry about anything else.
You should close all trades immediately if you are in a position of not having proper money and risk management, and find yourself in a situation of breaching your maximum risk level (either as a percentage of your capital or as a predefined sum of money). After that, you should configure proper money and risk management. Trading sensibly requires you to do this, otherwise you leave your money up to chance.
Compared to the "Smart TP" account, the main Waka Waka account managed and created by its developers team "Valery Trading" is pretty small. They - Waka's developers - ensured that because of this, they measure their maximum risk in money and not in percentage, and that they would add more funds if necessary. However, their larger "Smart TP" account has a maximum risk measured in %, so if they have a large floating drawdown it will close all trades.
Despite the fact that no trading strategy is completely immune from fluctuations in the market and potential losses, it is crucial to understand this. Drawdowns and losses can and will occur even in the most well-designed systems. Risk management must be implemented from the outset in order to be prepared for these situations. A clear limit on your risk tolerance can protect your investments and minimize potential losses by setting a percentage of your capital or a fixed amount. A proactive approach like this minimizes potential losses, ensuring that a portfolio is resilient to market swings and won't disappear overnight.
