Controlling Losses

[Dave64]

This topic has probably been discussed at length elsewhere but what strategies, if any, do people have in place to deal with those instances where the market goes against your position? Obviously I'm not asking for specific details or copies of your rules files but I'd be interested in peoples thought process/mindset when tackling this scenario. Do you rely on a stop loss, reverse your position, increase your position in hope of a bounce back, sit on your hands and pray (my favoutite atm), all of the above or is your automation so well designed that you very rarely find yourself in this position?

Todays goal (and going forward): take a good look at situations where it all went tits up and devise a cunning plan to stop it from ever happening again!