I hope Luc still answers this question... But I'm betting he'll just say, "I participate in the next bounce."
I asked a similar question once, and his response was that he gets out on the next bounce, win or lose. But I also gather that most times, Luc likely just participates on next bounce. If you have a sensible way to layer your size in, you should rarely NEED to take losses.
Imo, this is all about managing your risk.
I layer in, in 1-2-4-8 type fashion. Where each of my expected panic distances get to a heavier size, and the TOTAL size/risk I will incur is decided before the trade is even put on. How you add size on the way down, tells you how much price needs to move to get back to Break-Even/Profit.