If you trade trend, you'll get a bunch of false starts If you trade momentum, you'll often buy the top/sell the bottom If you trade mean reversion, you'll periodically get carried out by an outsized move And so on for basically every trading system This is the cost of doing business that's embedded into every market effect you're monetising Your job is to understand it and manage it If you try to avoid it entirely you simply won't get paid There's no perfect system, it's all about managing trade-offs Go take a look at your setups/playbook or wherever your trading system lives and map its assumptions and failure cases The stuff you wanna avoid: 1. Mutating your system because the risk feels uncomfy so you get the worst of both worlds e.g. not holding for long trends/outsized moves but still eating the false starts when you're wrong (all the downside, no balls for the upside) 2. Not knowing what the trade-offs are and sizing like a dickhead so when you're wrong it wipes out all your gains e.g. penny collecting on mean reversion with increasing size and then getting fully wiped on the outsized move