My EA Is in Drawdown: What to Do (and What NOT to Do) to Avoid Destroying a Profitable System
If your EA is in drawdown right now, you’re not alone.
And here’s the uncomfortable truth:
Most traders don’t kill their accounts because the EA is bad.
They kill it because they panic:
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they change settings mid-drawdown
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they increase risk to recover faster
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they stop the EA right before recovery
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they switch to a new EA (again)
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they blame the strategy without checking execution
This post is your evergreen drawdown protocol: clear steps, no drama, no superstition.
Key Takeaways (Read This First)
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Drawdown is normal. Panic is optional.
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Most drawdown damage comes from human interference.
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First check execution environment (spreads/slippage/uptime), not the EA logic.
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Use a simple decision tree: normal vs abnormal drawdown.
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Only scale after you can survive drawdowns (Axi Select).
Step 1: Don’t Touch Anything for 24 Hours (Yes, Really)
The worst decisions happen in the first emotional hour.
If you change settings immediately, you destroy your ability to evaluate the system.
Your first move should be boring:
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stop watching every tick
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don’t “optimize”
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don’t revenge-size
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collect information
Most drawdown “problems” are actually:
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temporary market conditions
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or execution issues
Step 2: Identify the Type of Drawdown (Normal vs Abnormal)
Normal drawdown usually looks like:
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gradual decline
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losses within expected behavior
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no technical issues
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trades still match the EA’s logic
Abnormal drawdown usually looks like:
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sudden performance collapse that doesn’t match history
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frequent stop-outs by a few points
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poor fills and weird entries
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spreads exploding at random hours
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terminal disconnects / missed trades
Your job is to classify the drawdown first.
Not “fix it” instantly.
Step 3: Check the Environment (Most People Skip This)
Before blaming your EA, check the environment.
A) Spread expansion
If spreads are wider than usual, expectancy drops fast.
This matters a lot for:
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Gold
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breakouts
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tight stop logic
B) Slippage quality
If your fills are consistently worse, your EA can “look broken” even if it isn’t.
C) Broker reliability
Execution consistency is a real edge.
Recommended broker profiles for EA execution:
IC Trading (raw spreads / low trading cost):
https://bit.ly/3KvI9RO
Pepperstone (broad EA compatibility):
https://bit.ly/4ophy72
D) Uptime (MT4/MT5 stability)
If you’re running on a home PC:
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disconnects
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restarts
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sleep mode
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platform freezes
can create missed entries and distorted performance.
Sometimes the EA is fine. Your platform wasn’t.
Step 4: Check If You Accidentally Changed the Rules
A classic drawdown trigger is human “small changes”:
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different timeframe
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different symbol settings
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different lot size
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broker changed contract specs
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changed spreads/commission model
If you don’t run stable rules, you can’t evaluate stable performance.
Step 5: Use the Decision Tree (What To Do Next)
Here’s the simple, evergreen decision tree:
If execution environment looks worse than usual:
Do this first:
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stabilize broker conditions
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check spreads at key sessions
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confirm terminal stability
Then re-evaluate.
If the drawdown matches historical behavior:
Do NOT touch settings.
Your move is:
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reduce screen time
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stay consistent
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let the sample size build
If the drawdown is truly abnormal and persistent:
Only then consider:
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lowering risk (not changing strategy logic)
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pausing one engine while keeping the other running
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testing the EA on a second broker for comparison
The goal is to avoid “random changes” that erase your evidence.
Why a Small Portfolio Helps During Drawdown
Drawdown feels worse when you rely on one strategy.
A simple 2-engine portfolio helps because:
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one engine can underperform while the other stabilizes
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psychologically you stop obsessing over every trade
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you reduce the temptation to interfere
A clean foundation:
JPY Trend EA ProTrading (74 USD)
MT5: https://www.mql5.com/en/market/product/157484
MT4: https://www.mql5.com/en/market/product/157485
Gold Trend Breakout EA ProTrading (74 USD)
MT5: https://www.mql5.com/en/market/product/157465
MT4: https://www.mql5.com/en/market/product/157466
Simple. Trackable. Survivable.
The 5 Things You Must NOT Do in Drawdown
If you do these, you destroy your system:
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Optimize settings on recent losing data
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Increase lot size to “recover faster”
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Stop the EA after a short losing streak
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Jump to a new EA because it “looks better”
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Switch brokers randomly without testing execution
Most traders don’t lose to the market.
They lose to their own interventions.
Scaling Capital: Why Drawdown Discipline Is the Real Test (Axi Select)
Here’s the truth:
If you can’t handle drawdown on a small account,
you won’t handle it with bigger capital.
Scaling requires:
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stable execution
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stable rules
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stable risk
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stable psychology
If you’re serious about scaling, compare Axi Select:
https://bit.ly/48TlcAc
The traders who win long-term are not the ones who avoid drawdowns.
They’re the ones who survive them without self-sabotage.
FAQ (SEO Boost)
Is drawdown normal for EAs?
Yes. Every strategy has drawdown. The problem is usually not the drawdown—it’s how traders react to it.
Should I stop my EA when it’s losing?
Not automatically. First classify the drawdown (normal vs abnormal) and check execution environment. Many traders stop right before recovery.
Why does my EA get stopped out more than expected?
Often due to spread expansion or slippage. Broker conditions can change the real results versus backtest assumptions.
What’s the safest change to make during drawdown?
If you must act, reduce risk (lot size) instead of changing strategy logic. Changing logic destroys your ability to evaluate performance.
What’s a smarter scaling path than prop firm challenges?
Compare Axi Select if you want scaling aligned better with systematic trading:
https://bit.ly/48TlcAc
Quick Links
Axi Select:
https://bit.ly/48TlcAc
IC Trading:
https://bit.ly/3KvI9RO
Pepperstone:
https://bit.ly/4ophy72
JPY Trend EA ProTrading
MT5: https://www.mql5.com/en/market/product/157484
MT4: https://www.mql5.com/en/market/product/157485
Gold Trend Breakout EA ProTrading
MT5: https://www.mql5.com/en/market/product/157465
MT4: https://www.mql5.com/en/market/product/157466
