{"id":21740,"date":"2025-06-03T13:31:09","date_gmt":"2025-06-03T20:31:09","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=21740"},"modified":"2025-06-03T13:31:09","modified_gmt":"2025-06-03T20:31:09","slug":"drawdown","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/drawdown\/","title":{"rendered":"Drawdowns, ISM, EIA Energy, Beige Book; Your 4 Important Need-To-Knows for Trading Futures on June 4th, 2025"},"content":{"rendered":"

\"\"<\/p>\n

Drawdowns<\/h1>\n

ISM, EIA Energy, Beige Book<\/h1>\n

By John Thorpe,\u00a0Senior Broker<\/em><\/h3>\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
Relatively quiet day in most futures markets today,<\/p>\n

Not much regularly scheduled economic or earnings news tomorrow with a glint of fed speakers, only 2.<\/p>\n

The Drawdown<\/h1>\n

\"drawdown\"<\/p>\n

Rather than doing a market recap today below is a brief I put together regarding drawdowns and the psychology of drawdowns: In my opinion, they are not a bad thing, in fact I believe that drawdown periods are a very sane and good thing for any solid strategy. Drawdown periods are very efficient to shake out weak traders from the strategy while smarter traders can pick up their money (which is the name of the game after all). The time that passes since the first equity high until we reach a new equity high is the drawdown period. So, a drawdown period has two dimensions:<\/p>\n

The drawdown depth and the drawdown length.<\/h1>\n

Most people care about the drawdown depth as this is what is easier to see on back tests. However, the human the brain is much more affected by drawdown length. During live trading, it is easier to deal with a 10% drawdown for one week than with a 5% drawdown for five months.<\/p>\n

    \n
  • Detailed statistical information about the strategy: Expected profit, expected drawdown, maximal drawdown depth and length, average win percentage, reward to risk ratio, \u2026<\/li>\n
  • Different scenarios and the actions to take (if any): intense and\/or deep drawdown periods and what to do (or do nothing), whether to trade during Christmas time or summertime, whether to keep open positions during weekends or not, what to do after a losing year (or do nothing), funding and withdrawing plan, \u2026<\/li>\n
  • A very clear worst-case scenario: it is basically the \u201cline in the sand\u201d where we know that the strategy has lost it\u2019s edge and something must be done (stop trading the strategy, adapting parameters, \u2026). There are many ways to calculate it (double the max historical drawdown, using Montecarlo simulations, using regression lines multiplied by x times the standard deviation on the equity curve, \u2026). In the end it is a number. The important thing is to have it written in the trading plan.<\/li>\n<\/ul>\n

    When facing a problem that generates pain or panic such as a sudden deep drawdown, most of the time, when analyzed with rigor and care, the problem is not so important, and everything is within expected statistics. You will see that there were many periods in the past with similar characteristics.<\/p>\n

    Market volatility is here to stay for the foreseeable future with its ebbs and flows.<\/p>\n

    Choose your opportunities wisely. Today\u2019s market swings were largely back to normal (pre tariff talk normal)<\/p>\n

    Tomorrow<\/strong><\/span>:<\/p>\n

    Econ Data:<\/strong><\/span>\u00a0\u00a0ISM Services PMI,\u00a0EIA Energy<\/p>\n

    FED Speak:<\/strong><\/span> 2<\/p>\n

    Earnings:<\/strong><\/span> Dollar Tree<\/p>\n

    Tariff news:<\/strong><\/span>\u00a0Anything goes!<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n

\"\"<\/td>\n\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

July Wheat – Corn Spread<\/h1>\n

It took a couple of attempts but the July wheat – corn spread has decisively broken out above the extended downtrend, and activated upside PriceCounts objectives in the process. The first count projects a possible run to the $1.20 area.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
\n

\u200aThe PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an \u2018exact\u2019 science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.<\/em><\/p>\n

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com<\/em><\/p>\n

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.<\/em><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

Daily Levels for June 4th, 2025<\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

Want to feature our updated trading levels on your website?\u00a0Simply paste a small code, and they’ll update automatically every day!\u00a0<\/em><\/h2>\n

Click here for quick and easy instructions<\/a>.<\/em><\/h2>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

Economic Reports<\/h1>\n

\n

provided by:\u00a0<\/a>ForexFactory.com<\/a><\/p>\n

All times are Eastern Time (New York)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

Find us on Trustpilot<\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0<\/em><\/p>\n

You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. <\/em>You may lose all or more of your initial investment. <\/em><\/p>\n

Opinions, market data, and recommendations are subject to change at any time.<\/em><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\n

Call Now<\/a><\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Join our\u00a0Private Facebook group<\/a><\/p>\n

Subscribe to our\u00a0YouTube Channel<\/a><\/p>\n

Listen to our podcast: Subscribe on\u00a0Apple<\/a>,\u00a0Spotif<\/a>y,\u00a0Amazon<\/a><\/p>\n

or wherever you listen to podcasts!<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\"Facebook\"<\/a>\u00a0\u00a0\"Instagram\"<\/a>\u00a0\u00a0\"LinkedIn\"<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n\n\n\n
\"\"<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
\n
<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
Services<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n\n\n\n\n
Software<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n\n\n\n\n
Tools<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n\n\n\n\n
Community<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n\n\n\n\n\n
Contact<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
Cannon Trading Co., Inc.<\/span><\/em><\/p>\n

12100 Wilshire Blvd.<\/span><\/em><\/p>\n

Suite 1640<\/span><\/em><\/p>\n

Los Angeles, CA 90025 US<\/span><\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Drawdowns ISM, EIA Energy, Beige Book By John Thorpe,\u00a0Senior Broker Relatively quiet day in most futures markets today, Not much regularly scheduled economic or earnings news tomorrow with a glint of fed speakers, only 2. The Drawdown Rather than doing a market recap today below is a brief I put together regarding drawdowns and the […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[231,76,230,1491,237,239,67,70,30,3,61,358,235,344,233,234],"tags":[1740,1739,1675,16,73],"class_list":["post-21740","post","type-post","status-publish","format-standard","hentry","category-commodity-brokers-2","category-commodity-trading-2","category-day-trading-2","category-e-mini-futures","category-energy-futures","category-financial-futures","category-future-trading-news","category-future-trading-platform","category-futures-broker-2","category-futures-exchange","category-futures-trading-2","category-futures-trading-education","category-index-futures","category-indices","category-options-trading-2","category-trading-guide","tag-beige-book","tag-drawdown","tag-energy","tag-futures-trading","tag-trading-futures"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/21740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=21740"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/21740\/revisions"}],"predecessor-version":[{"id":21742,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/21740\/revisions\/21742"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=21740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=21740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=21740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}