No no no, my idea of controlled loss is a hard max loss per trade, with hard stop losses, after VaR consideration (I want VaR consideration to be handled by darwin providers). So if a darwin trades 5 times, with 1% risk per trade, and loses all 5, I am good with that (1/32 chance with coin flip decision making).
Now, let us look at UEI -> There was a long EURUSD order, and it has been open for like 3-4 days now? And it has incurred like -10%. Every trade idea has a % chance of being correct, and after risk/reward, we get expected return Reward * Winchance - Risk * (1-Winchance). I get what you are saying, that as long as this thing is sufficiently positive long term, we should tolerate short term volatitly -> I quite agree.
On the other hand, with this Risk and Reward, if Risk/Reward << 1, meaning risk per trade is too high relative to reward (common among loss averse darwins) this kinda jarring losses occur. I am dumping them because this sort of risk is outside of my tolerance - not because they are uninvestable.