Capital allocation is the most important tool traders have in their toolbox during a market correction.
A conservative portfolio managed mechanically the tastytrade way lost 16% from high to low during the 2020 selloff (rolling not included), around half of S&P 500 losses. A more aggressive portfolio would be estimated to lose around 2-3x more, around 1-1.5x S&P 500 losses.
The key is not over-allocating capital. Like in 2008, if a portfolio was allocated below 50% of the available capital, losses could be recovered over time.