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® “Home-Study Course” Study Manual  Page 236

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Experiencing Losses

If you experience six consecutive losing trades or a “Draw Down” of
more than 15%, the “Market Cycle” or “Volatility” on the market and
time frame you are trading has probably changed.

If this occurs, do the following to adapt to the new market cycle:

1) Stop trading with real money. Keep trading the same market and
   time frame and go back to “Paper Trading”. Wait till you have 3
   winning lots of 35 “Paper Trades” before trading with real
   money.

2) Change the settings on the ART® Charting Software to see if that
   eliminates the losses you incurred in your recent “Draw-Down”.
   If so, “Paper Trade” again to validate the new software settings.

   3) Change time frames until you find the time frame that is working
       the best, you may still have to adjust your ART® software
       settings.

   4) Use the ART® “Advanced techniques” to help you determine the
       best ART® trades. Test each “Advanced Technique” to see which
       one fits your trading style.

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