All Market Conditions - Especially Bear Markets
| Strategy Type | Drawdown Limitation / Capital Preservation |
| Market Outlook | All Market Conditions - Especially Bear Markets |
| Risk Level | Risk Management Tool - Reduces Risk |
| Time Horizon | Real-Time Monitoring with Long-Term Protection |
| Best Conditions | Essential during market stress and high volatility |
| Avoid When | Never - drawdown control is fundamental to survival |
| 2008 Crisis | Nifty -60% peak-to-trough |
| 2020 Covid | Nifty -38% in one month |
| 2022 Correction | Nifty -18% correction |
| Typical Annual | 10-20% drawdown in normal years |
| Circuit Breakers | 10%, 15%, 20% market-wide halts |
| Stock Circuits | Individual stock 2%, 5%, 10%, 20% limits |
| Mis Auto Square | Intraday positions closed 3:15-3:25 PM |
| Margin Calls | Broker can liquidate on margin shortfall |
| Sebi Risk Management | SEBI mandates risk management for MFs/AIFs |
| Peak Margin | 100% margin required upfront |
| Stress Testing | Required for institutional portfolios |
| Disclosure | Drawdown must be disclosed in fund documents |
| Liquidity Crisis | Liquidity disappears in crashes - plan ahead |
| Gap Risk | Opening gaps can skip stop levels |
| Fno Mtm | Daily MTM can force position closure |
| Recovery Time | Indian markets typically recover in 1-3 years |
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