Drawdown Management in Practice — Auriflumen Asset Management on Staying Investable
Drawdowns don’t usually arrive as a single dramatic event. They more often build through small, repeatable losses that compound while portfolios drift away from their intended risk. That drift is the real problem: it turns ordinary volatility into forced decisions. On Jan 26, a cautious tone showed up early with equity futures slightly lower and volatility holding firmer, a combination that often tests whether risk was sized correctly in the first place. Auriflumen Asset Management treats these sessions as reminders that process matters most when the market feels “almost normal.” A useful drawdown framework begins with a simple principle: protect decision quality. The goal is not to win every day, but to avoid the kind of loss that forces liquidation at the wrong moment. When uncertainty rises, correlations can tighten, liquidity can thin, and diversification can stop behaving the way it did in calmer conditions. If risk assets weaken together—such as BTC trading softer by around 1.7...