Drawdowns are data, not a verdict

Every return series contains drawdowns. The important distinction is whether the decline fits the expected behavior of the strategy.

Before investing, define a tolerable loss range and the conditions that would invalidate the thesis. Decisions made before stress are usually clearer than decisions made during it.

Portfolio-level drawdown can be managed through diversification, position sizing, and rebalancing. None removes risk, but each makes risk more legible.

A system becomes easier to follow when its difficult periods are understood in advance.