The speaker outlines a progression for managing trading drawdowns: initially aiming for subsequent drawdowns to stay above the previous low (e.g., not breaking below zero), then progressing to not breaking below 250 pips, and eventually aiming for drawdowns to remain above 1000 pips when the equity curve reaches 1500 pips.
"The real goal of the equity curve is for your draw downs to start coming in at a higher level. So if we started out at zero and our draw down went to minus 200 then we would want to get high enough on our equity curve to where our next draw down did not break below our zero point. Next we would want to get high enough on our equity curve to where our next draw down did not break below 250 pips and so on and so forth. Get up here towards 1,500. You want to try to make sure your draw down doesn't get under 1,000 pips."
