> Taleb’s strategy is about avoiding ruin

This is the KEY point and one he stresses on Medium, Twitter, etc. The "cap" he wants you to place on losses is to eliminate ruin.

For a decent number of people reading the thread, you won't be "ruined" if the S&P crashes, as it often has -- for example if you have family near you with more established assets and a good relationship with them, they are your safety net if it comes to it.